South Korea’s Daelim has signed an agreement with National Iranian Oil Company (NIOC) to revamp the Isfahan oil refinery, according to a report by Iran’s Mehr News Agency (MNA).

The memorandum of understanding (MoU) is on a four-year engineering, procurement and construction (EPC) contract worth $2bn.

Daelim will cooperate with Iranian contractors and National Iranian Oil Engineering and Construction Company and provide financing for the project, MNA quoted managing director of Isfahan oil refinery Lotfali Chavoshi as saying.

The project aims to reduce the refinery’s crude feedstock by 16,000 barrels a day (b/d) and increase fuel output by 16,000 b/d by adopting new production technologies. It will also increase the production of liquefied petroleum gas (LPG).

The Isfahan refinery first started production in 1979 and has a current capacity of 375,000 b/d.