Kazakhstan Chamber of Commerce in the USA

KazCham


Iran and China to join construction of Kazakhstan’s oil refinery

Posted on November 12, 2015 by KazCham

Colibri Law Firm

The vice-governor of Mangistau Oblast, Rakymbek Amirzhanov, has confirmed that representatives of Iran and China have put both the countries forwards to take part in the construction of a fourth oil refinery.

Amirzhanov explained that Iran has expressed an interest in the project due to several factors: “In Iran, all the oil refineries are located in the north of the country. All the oil fields are located in the south. Iran spends about $35 per tonne of oil to transport crude from the south to the north of the country.” Kazakhstan, situated close to northern Iran, is therefore a good candidate for a new partnership in oil swaps.

The approximate minimum amount of investment in the construction of the project is estimated to be $6 billion. Chinese companies, however, are willing to enter the project with investments estimated at $5 billion.

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