National Iranian Oil Company (NIOC) is preparing to tender a contract for the construction of a section of pipeline to transfer crude to the estimated $2bn Jask Oil Terminal in the southern Hormozgan province of Iran.

“A project to lay a section of the pipeline has already been tendered and the remaining part will be put out to tender in the next few days," said NIOC managing director Ali Kardor, in comments reported by the Iranian Students News Agency.

The scheme involves constructing 1,000 kilometres of pipeline to transport crude from Genaveh in the southern Bushehr province to Jask in Homorzgan province.

The tender to build storage units at the new terminal has been halted due to a lack of financially-sound proposals from foreign investors, according to Kardor.

“Plans are in place to launch another tender, but should foreign investors fail to submit attractive proposals, we will turn to local financiers,” he said.

The Jask terminal is expected to have a storage capacity of 30 million barrels of oil and export 1 million barrels a day once completed.

NIOC has set 2021 as the target date for completing the project, which forms part of a larger scheme for developing the oil-rich Homorzgan region.

Iran currently exports 90 per cent of its crude from its terminal at Kharg island on the Gulf.