SHANA news agency quoted Hamid Sharif-Razi as saying “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.”
NIOEC and Malaysian SKSD have established a joint company named SKS-PARS in order to construct the Kedah Refinery which will have a daily capacity of 250,000 barrels and will come on stream at an estimated cost of $4.8 billion.
Iran is to supply the refinery with 100,000 barrels per day of extra heavy crude and 150,000 bpd of heavy crude as feedstock.
SKS-PARS will fund 30 percent of the needed amount for the project and the other 70 percent of the investment will be secured through loans.
The Pars refining unit will have the capacity to produce 12 million liters of gasoline per day from refining 120,000 bpd of gas condensates.
Malaysia’s Petrofield is going to invest $2 billion in this project in the future.
Previously, Deputy Iranian Oil Minister for International Affairs Hossein Noqrekar-Shirazi had reported that the value of joint projects between Iran and Malaysia in the oil sector is to reach $22 billion.
Noqrekar-Shirazi said that Malaysia had asked Iran for collaboration in the construction of another refinery in the south of the country.