Thursday, May 22, 2014

Iran: Iranian companies to replace Chinese firms in Azadegan project, official

Source: IRNA

Tehran, May 21, IRNA – Managing Director of the National Iranian Oil Company Rokneddin Javadi said that Iranian companies will replace Chinese firms in South Azadegan development plan.

Talking to IRNA on Wednesday, he said that the joint field will be developed by Iranian experts.

According to the official, work on other fields situated in west of Karoun is steadily going on.

Based on prior schedules, Javadi added, about 80-100 million cubic meters will be added to the countryˈs gas output capacity.

Tehran officially terminated the contract of the Chinese oil firm, CNPC, over its failure to fulfill obligations in the Azadegan gas field.

Oil Minister Bijan Namdar Zanganeh issued a decree on April 29 terminating the contract with the China National Petroleum Corporation (CNPC) after the firm failed to fulfill its commitments in the South Azadegan field.

Iran last week announced that it was terminating a US$2.5bn buyback contract with the CNPC to develop the South Azadegan oilfield.

In February Iranˈs oil minister, Bijan Zanganeh, expressed dissatisfaction over the pace of the Azadegan development, giving CNPC three months to get up to speed or face breach of contract. According to Zanganeh, only seven wells had been drilled out of 185 wells planned for the first phase. The South Azadegan field is shared with Iraq.