Sinopec Engineering Inc., a unit of refining giant China Petrochemical Corp., started up a refining unit this week at Iran's Arak refinery, a rare example of completion for a recent project involving a foreign company in the sanctions-hit nation.

In a statement posted on its Website Thursday, SEI said on August 15 it started an hydrotreating facility, which uses high-pressure hydrogen to desulphurize and remove of nitrogen and metals from petroleum.

The project is part of an Iranian effort to alleviate its dependence on oil-products imports by increasing its domestic refining capacity.

Iran has invited new companies--notably Asian ones--to replace Western majors that refused to sign up for new oil and gas projects due to sanctions.

But the policy has had mixed results. Iran warned last week it could cancel $5 billion in contracts signed with China National Petroleum Corp. if the delays in developing the phase 11 of the South Pars gas field continue.

And Tuesday, Belarusian national oil company Belarusneft pulled out from the development of an Iranian oilfield over contractual disagreements.

Διαβάστε ακόμα