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Chiyoda

Japan

 

According to the company's website, Chiyoda has worked in Iran since 1967, when it helped build a gas processing plant on Kharg Island (Chiyoda Website, accessed August 23, 2010).

Date: 1990-1998

Deal: In February 1990, a joint venture between Chiyoda and the Italian firm Snamprogetti received a $1.24 billion contract for work on the oil refinery at Bandar Abbas, according to an industry publication. The refinery was supposed to come online in 1993, but that deadline was not met due to funding problems. In 1994, the National Iranian Oil Company (NIOC) decided to give the project to local firms (APS Review Downstream Trends, April 2, 2001).

However, according to the Iranian firm Pasargad Oil Company's website, in 1996 Chiyoda and Snamprogetti installed a refining unit, designed by Austrian firm Porner and capable of producing 5,000 bpd, at the refinery (Parsargad Oil Company Website, accessed August 25, 2010).

According to Stratfor, foreign investors left the Bandar Abbas project in 1994 due to funding problems, and local firms struggled to complete the project, delaying it by four years. However, Chiyoda and Snamprogetti came back to the project and completed the 232,000 bpd refinery in 1998 (Stratfor, November 2, 2007).

Date: May 2001 – 2006

Deal: In 2001, Chiyoda Corporation and Japanese firms Toyo Engineering and Mitsui & Company won a contract from Iran's National Petrochemical Company (NPC) to work with Iranian firm Petrochemical Industries Design and Engineering Company (PIDEC) to build a petrochemical plant in the Assaluyeh region, according to a company press release. The plant was to use gas from Iran's South Pars field to produce up to 2,050 tons per day (t/d) of ammonia and 3,250 t/d of urea, making it the largest fertilizer plant in the world. At the time, the plant was expected to be finished by mid-2004 (Chiyoda Corporation Press Release, May 24, 2001).

According to a Toyo press release, the contract as worth about ¥30 billion (around $371 million) (Toyo Engineering Press Release, May 24, 2001).

According to Chiyoda's website, the project was completed in 2006 (Chiyoda Website, accessed August 23, 2010).

Date: April 2004 – 2009

Deal: In April 2004, Iran's Shana news agency reported that Iran's Petrochemical Industries Development Management Company had awarded Chiyoda Corporation and Toyo Engineering another contract to build an ammonia plant and a urea plant in Assaluyeh. Under the terms of the deal, Chiyoda was responsible for the urea plant, using technology from Dutch company Stamicarbon; and urea granulation, using technology from Belgian company Hydro Fertilizer. The contract was worth approximately $230 million (Shana (Iran), June 8, 2004).

According to Business Wire, the consortium won the contract without competition because of its "successful execution of the first project and the application of an export credit by Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI)" (Business Wire, April 12, 2004).

According to Toyo Engineering Corporation's 2009 Annual Report, the project in Assaluyeh was completed during the fiscal year ending March 31, 2009 (Toyo Engineering Corporation Annual Report 2009).

Date: June 2006 – Unknown

Deal: In 2006, a consortium of Chiyoda and France's Technip won a front-end engineering and design (FEED) contract for the Persian LNG project, a joint venture between Royal Dutch Shell, Spain's Repsol, and the National Iranian Gas Export Company (NIGEC) to develop a liquefied natural gas plant in Iran, according to an industry publication. NIGEC is a subsidiary of NIOC. The contract was expected to be carried out over six to nine months (Middle East Economic Digest, June 16, 2006).

It is unclear whether Chiyoda completed this contract.

U.S. Business Ties: According to Chiyoda's website, the company has an overseas subsidiary, Chiyoda International Corporation, based in Houston, Texas (Chiyoda Website, accessed August 23, 2010).

According to USASpending.gov, Chiyoda has not received any U.S. government contracts in the past 10 years (USASpending.gov, accessed August 25, 2010).