TEHRAN, Aug. 17 (UPI) -- Malaysia and Iran formed a joint company to develop the natural resource potential in their respective countries, executives said.
Hamid Sharifrazi, a director at the National Iranian Engineering Oil Construction Co., said the two countries signed deals worth $7 billion for the joint production, the Petroenergy Information Network reports.
"Iran and Malaysia have signed two memorandums of understanding for the construction of Pars gas condensates refining in Iran's Shiraz Refinery and Kedah Refinery in northern Malaysia," he said.
The two sides agreed to form a joint Iranian-Malaysian company called SKS_PARS.
Sharifrazi said developments at the Pars gas condensate field in the southern province of Fars could bring 120,000 barrels worth of product. The Malaysian project in the northern province of Kedah, meanwhile, could produce about 250,000 barrels of crude oil per day with the investment of some $4.8 billion.
The director said a delegation from Malaysia was set to travel to Tehran soon to discuss cooperative development. Apart from refinery project, both parties are set to discuss development at the Ferdowsi and Golshan gas fields in Iran.
Iran imports much of its energy needs because of a lack of refining capacity.