Korea builds new refinery as India negotiates with Iran
A South Korean refiner is teaming up with Shell to build a new plant as India seeks methods of paying for Iranian crude supplies.
South Korea's Hyundai Oilbank announced the new refining unit in collaboration with Shell Group subisidiary, Shell Petroleum. The operation will produce 13,000b/d of lubricant base oil and 7,000b/d of fuel oil, with start-up slated for 2014.
Hyundai will shoulder a 60% lion's share of the investment, although they remained coy about the total sum involved. The output from the plant, to be built at Hyundai Oilbank's Daesan refinery, will be for export to China and other parts of Asia.
Meanwhile, India is sending a delegation to Iran to discuss increasing exports to help meet payments for the Middle East nation's oil which has been hit by international sanctions. India currently spends some $12bn annually on Iranian crude, around 12% of India's total oil needs.
Because the sanctions prevent currency transfer to Iran, the Indian delegation will explore 'payment in kind' exports such as grain, manufactured goods or precious stones.
