South Korea's construction giant Daelim Industrial Company said work is in full swing at the Isfahan Oil Refinery project site in Iran, and on track for completion by the end of 2020.

The plant currently meet about 22 per cent of Iran's demand for oil products with a capacity to process 375,000 barrels per day of oil, according to Shana.

The South Koreans have undertaken to provide €1.9 billion ($2.27 billion) for improving and optimizing facilities at Isfahan Oil Refinery, stated the report citing Alireza Arman Moqadam of National Iranian Oil Refining and Distribution Company.

The project, which kicked off last December, is likely to be completed by the end of 2020.

As per the deal, the South Korean company will be in charge of designing, equipping and procuring material, constructing and financing, said the report.

South Korea's Eximbank signed a contract with Iranian banks in August to provide €8 billion ($9.4 billion) in loans to finance projects in Iran by South Korean companies, it stated.

Besides the Koreans, the Chinese too are planning multibillion-dollar optimization and expansion of two major oil refineries in Iran, it added.