The project involves the installation of new hydrogen and sulphur recovery units as well as a 40-MW power station and will be tendered on an engineering, procurement and construction basis. The project will entail basic design, procurement of materials and equipment, and construction. The company says an invitation to bid is likely to be issued in late May after prequalification has been completed. The deadline to apply to prequalify is 23 March.

NIOEC is the tendering arm of National Iranian Oil Refining & Distribution Company, which is aiming to double petrol production in the republic by 2010 and bring all products up to Euro 2005 specifications.

A major petrol shortfall has hurt government finances as the government pays for imported petrol sold in Iran at heavily subsidised prices. The Majlis (parliament) is now considering a bill to raise the price of petrol from $0.09 a litre to $0.16. The subsidy in the year ending 20 March is likely to cost the government $13,000 million.