Iran’s Persian Gulf Star Oil Company (Pgsoc) says a condensates refinery planned at Bandar Abbas faces a delay unless more than $1bn of funding can be provided by the Oil Ministry.

The refinery will have capacity to process 360,000 barrels a day (b/d) of condensates, making it one of the largest in Iran.

It was originally due to come on stream in 2010 but has stalled because of financing issues.

Pgsoc says only $500m of the $1.6bn required to build the refinery has so far been raised through the shareholders of Pgsoc.

The outstanding $1.1bn balance was to be supplied by the oil ministry in a new financing scheme, according to state-run energy news agency Shana.

Italy’s Snamprogetti, with local firms Tehran Jonoob and Bina is carrying out the engineering, procurement and construction (EPC) deal for the refinery.

Pgsoc is owned by National Iranian Oil Refining & Distribution Company (40%), Invest Fund of Iran’s Social Security Organisation (35%), Oil Industry Pension Fund (10%) and the Indonesian Star Petrogas (15%).