Jumping on the Iranian Train

An international project to construct large-scaled gas handling facilities in Iran has awarded a contract to South Korea's Daewoo Engineering & Construction Co.

The construction company said the National Iranian Oil Company, which placed the order, has notified it of having been chosen as one of an international consortium for the construction of gas handling facilities on Kharg Island, Iran's primary oil export terminal in the Persian Gulf.

Japan's JGC Corp. will lead the consortium, in which Iranian companies will also participate, according to Daewoo Construction.

Daewoo could not clarify which Iranian companies will be participating.

Daewoo Construction will put US $395 million into the $1.2 billion project, but as a final contract has yet to be signed, the terms of the agreements are subject to change, the company added.