Iran has inked the contract to build a refinery-petrochemical complex in Malaysia, it reported this week, as part of an agreement that will also see the South Pacific country invest in Iran’s gas fields.

The refinery-petrochemical complex, which will manufacture gas-oil, gasoline, jet fuel, LNG, and petrochemical raw materials, is to be constructed in the Malaysian state of Terengganu over a period of six years.

The facility will reportedly cost more than $6bn.

Malaysia, on the other hand, will invest $5-6bn in Iran’s gas fields - according to the cooperation Memorandum of Understanding’s (MoU) that the two sides reportedly signed in Tehran this week.

“The contract was signed in Malaysian capital of Kuala Lumpur between Iran’s Hampa Engineering Corporation and a Malaysian firm,” the report said.
Meanwhile, Iranian President Mahmoud Ahmadinejad is thought to have revealed that the falling oil prices are gouging the country’s economy and will force the government to slash spending.

Iran, which holds estimated recoverable oil reserves of 138 billion barrels and produces oil of some 4.2 million barrel per day (bpd), is eager to export the long-dealt-with know-how on oil industry, and depends heavily on the foreign funds - especially in gas and oil sector.