China's Sinopec (SNP) signed a preliminary agreement to provide financing of $6.5 billion for the construction and development of oil refineries in Iran, an Iranian news agency said Wednesday, as the Islamic republic seeks non-Western investment to overcome looming sanctions on its refining sector.
China's Sinopec (SNP) signed a preliminary agreement to provide financing of $6.5 billion for the construction and development of oil refineries in Iran, an Iranian news agency said Wednesday, as the Islamic republic seeks non-Western investment to overcome looming sanctions on its refining sector.

Iran 's semiofficial Mehr News Agency reported that the National Iranian Oil Refining and Distribution Co. has signed a tentative financing agreement with the Chinese state-owned company. The agency added it would take another two months to finalize the deal.

A Sinopec spokesman said he was unaware of such an agreement.

The news agency said feasibility studies had been completed and engineering and procurement contracts tenders are to be held in the near future.

Mehr added that Iran needs about $23 billion to finance its current refinery plans.

Bills passed in the U.S. Congress, as part of sanctions over its nuclear program, would bar sales of refined products to Iran . The texts have yet to be signed into law.

Iran , which relies on imports for 30% of its products consumption, has said it has imports and investments plans in place to make up for any new sanctions.

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