|Hyundai Engineering CEO Sung Sang-rok, right, and AHDAF CEO Asghar Arefi hold contracts after signing an agreement in Tehran, Iran, Sunday, for the construction of a second phase petrol refining complex at the South Pars field in the Persian Gulf. / Courtesy of Hyundai Engineering|
By Park Jae-hyuk
Hyundai Engineering Co. (HEC) has clinched a 3.8 trillion won ($3.2 billion) project in Iran, which is the largest deal ever for a Korean construction company operating in the Middle East country.
According to the company, Monday, its CEO Sung Sang-rok signed an agreement in Tehran, Sunday, with CEO Asghar Arefi of AHDAF, a subsidiary of the National Iranian Oil Company (NIOC), for constructing the second phase of the Kangan Petro Refining Complex project at the South Pars field in the Persian Gulf.
It was HEC’s first deal in Iran after the company jointly constructed the fourth and fifth phases of gas treatment facilities there in 2005 with Hyundai Engineering & Construction (Hyundai E&C) which participates in the latest project as well.
HEC has also become Korea’s first big constructor to sign a deal with Iran, after the lifting of economic sanctions on the country last year. Since then, the government has backed the company, while policy finance institutions in Korea have guaranteed financial support.
HEC itself has also bolstered its friendship with organizations and affiliates in Iran since August 2015. The company sent its employees to Iran to visit those affiliates every day even before the lifting of sanctions.
Therefore, HEC could gain an advantage over its rivals in the country with great economic potential. Iran has the world’s largest amount of natural gas and the fourth largest amount of crude oil.
The South Pars field, where HEC will expand the size of a refining complex, is known as the biggest gas field in the world. For about 48 months, HEC will build facilities there for producing 400,000 tons of heavy polyethylene and 350,000 tons of light polyethylene a year.
“We tried our best to win the deal,” a HEC official said. “Using our technology and human resources, we will work hard to enhance our competitiveness and to get additional orders.”