Completion of the Kian Petrochemical Mega Project
The Kian Petrochemical Mega Project is one of the country’s major industrial and petrochemical projects, located in the Asalouyeh region, and has been developed with the aim of expanding the production capacity of strategic petrochemical products and completing the value chain. With an investment of approximately EUR 3.5 billion, this project will play a significant role in developing downstream industries, creating employment opportunities, and increasing the export capacity of petrochemical products.
Project Specifications and Objectives
- Project Location: Asalouyeh, Pars Special Economic Energy Zone
- Investment Value: Approximately EUR 3.5 billion
- Main Products: Olefin and High-Density Polyethylene (HDPE)
- Olefin Unit: Utilizing technology and license from Linde, Germany
- Project Objective: Completing the petrochemical industry value chain and producing high value-added products
- Approach: Meeting domestic industrial demand and expanding export capacity
Leveraging the capabilities of the Asalouyeh region, along with access to feedstock and energy infrastructure, this project is recognized as one of the key development initiatives in the petrochemical industry. Its completion can contribute to increased production, foreign currency generation, downstream industry development, and the creation of direct and indirect employment opportunities.
Following the termination of the contract on 1401/09/19, OIEC, with 38 ongoing contracts valued at approximately EUR 700 million and the equivalent of IRR 600 billion, initiated the process of settling the contracts with contractors, manufacturers, and suppliers.
In order to complete the settlement of the ongoing contracts, more than 960 activities were required to be carried out, leading to the final settlement of the Kian Petrochemical Project contract between OIEC and Kian.
Currently, as a result of the actions taken, the termination and settlement process of 36 contracts has been finalized. …
Key Actions Implemented:
- Providing legal solutions for resolving contractual and commercial disputes through negotiation, establishing appropriate legal frameworks, and recommending effective methods to prevent potential litigation.
- Performing arbitration duties as the company’s appointed arbitrator in contractual disputes, including reviewing documents, hearing statements from involved parties, and issuing arbitration awards in accordance with applicable legal principles and regulations.
- Preparing official correspondence, legal letters, and minutes related to contracts, negotiations, and management decisions, while ensuring compliance with legal and administrative principles and documenting decision-making processes.
- Documenting and organizing the legal affairs of projects and contracts to enhance transparency in obligations, monitor the implementation of contractual terms, and provide legal support for the company’s operational activities.
