Hyundai Wins $1Bn South Pars Refinery Contract

Hyundai Corp. has won a $1.04 billion contract from Petropars to build a gas refinery for phases four to six of the offshore South Pars gas field, according to the daily paper, Hamshahri. Petropars is in negotiations with Hyundai over the National Iranian Oil Co.'s precondition that local companies be used for part of the contract, Petropars Managing Director Akbar Torqan said. "The NIOC wants the Hyundai company to give 40% of the job, at 40% of the value of the contract, to Iranian companies," said Torqan. To improve its profit margin, Hyundai wants to subcontract 55% of the work, but at a price valued at 40% of the contract, he added.

The report didn't specify the gas refinery's location, but most onshore South Pars facilities are in the port city of Assaluyeh in the southern province of Bushehr. Approximately 13% of the work on phases four and five has been completed, Torqan said. Phases four and five, worth a total of $1.9 billion, will produce 2 billion cubic feet of gas a day and is due to be completed by mid-2005.

Petropars is operator with a 40% stake; Agip holds the remaining 60% stake.

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&to=http://www.hdcorp.co.kr/' target=_blank>HYUNDAI

&to=http://www.ppars.com/' target=_blank>PETROPARS