Sinopec signs MOU for Iran's oil sector

Nov. 25, 2009 at 10:51 AM

TEHRAN, Nov. 25 (UPI) -- China Petroleum & Chemical Corp. signed a memorandum of understanding with its Iranian partners to invest $6.5 billion in oil refinery construction in Iran.

China has embarked on an investment plan to increase its activity in the Iranian energy sector by investing significantly in national refineries.

Iran, meanwhile, set a national goal of spending more than $20 billion of its own money on seven new refineries in the country.

China Petroleum & Chemical Corp., or Sinopec, signed a memorandum of understanding with the National Iranian Oil Refining and Distribution Co. to invest $6.5 billion to help finance the Iranian oil refineries, Iran's Mehr News Agency reports.

China has moved into the Iranian energy sector already, most recently at the Hormuz refinery in the south of the country. China is involved also in the Abadan refinery, once the world's largest, near the Persian Gulf coast.

Tehran said it needs around $12 billion to increase its refining capacity. Finalization of the Chinese investment package is expected before February.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Ford recalls 432,000 North American vehicles over software bug
Aetna to acquire Humana for $37 billion in cash, stocks
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue