The China National Petroleum Corporation (CNPC) has agreed a US$5 billion deal with Iran to develop a section of the enormous South Pars field in the Arabian Gulf.
The official Iranian news agency IRNA reported that the concession is for phase 11 of the offshore field. This concession had originally been awarded to French energy giant Total, but it is apparent that Iran decided to award pahse 11 to another company after Total repeatedly delayed signing the contract.Â
“The aim of implementation of this project is to produce 50 million cubic metres a day of natural gas and other products,” Seyfollah Jashnsaz, managing director of the National Iranian Oil Company (NIOC) is reported as saying.
The development of the South Pars gas field has run into repeated problems due to political sensitivity of Iran’s nuclear ambitions.
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