Iran will build a $2 billion oil refinery with planned capacity to produce 120,000 barrels per day of oil in Spain, a report said.

National Iranian Oil Refining and Distribution Company (NIORDC) plans to team up with Spain’s Magtel for the construction of refinery in the southern port city of Algeciras, reported Press TV.

NIORDC and Magtel have signed a memorandum to assign feasibility studies on the project to an international auditing firm, according to the report.