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Iran cuts China out of oilfield project after delays

by Zamaneh Media
April 30, 2014
in Latest Articles
Reading Time: 1min read
0
Iran cuts China out of oilfield project after delays

Iran’s Ministry of Oil has officially removed China from the project to develop the South Azadegan oilfield because of “long delays.”

The ministry said on Tuesday April 29 that the China National Petroleum Corporation International (CNPCI) has been informed through all the proper legal channels that its involvement in the project has been severed.

In February, Minister of Oil Bijan Zanganeh announced that a final ultimatum had been issued to the Chinese company regarding the South Azadegan oilfield project.

The $2.5-billion agreement involved a joint oilfield between Iran and Iraq. While Iraq draws 250,000 barrels of oil a day from this oilfield, Iran draws only 50,000 barrels a day.

Iraq is also looking to expand its own extraction from this oilfield to 1.2 million barrels a day with the involvement of Shell and Petronas.

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