Asia > Eastern Asia > China > CNPC leaves Iran’s energy projects

China: CNPC leaves Iran’s energy projects

2014/04/22

China National Petroleum Corporation (CNPC) has left Iran's oil projects as an ultimatum over its continuous delays has expired.

Iran issued an ultimatum to CNPC on February 18 over its continuous delays in developing the South Azadegan oilfield.

At the time, Iranian Oil Minister Bijan Namdar Zanganeh said if this trend continues, CNPC will be expelled from the project.

The presence of CNPC in Iran will depend on changing its behavior within the 90-day ultimatum which has been given, Zanganeh said.

Tasnim news agency before reported that CNPC is on the verge of quitting Iran's South Azadegan oilfield development project.

CNPC had been awarded with developing North Pars oilfield, Yadavaran joint oilfield, North and South Azadegan fields, and the phase 11 of the South Pars gas field. Due to its repeated delays, the company has been expelled from the South Pars and the North Pars projects, and they are on the verge of being expelled from the South Azadegan project.

CNPC has been in charge of developing the field for seven years. However, only seven out of the projected 185 wells of the initial phase of the oilfield have been drilled so far, the managing director of Iran's Petroleum Engineering and Development Company (PEDEC), Abdolreza Haji Hosseinnejad said in February.

"The project is only seven % complete," he noted.

"CNPC was supposed to use 25 drilling rigs at the joint oilfield, but currently only five drilling rigs are active there," he added.

The oilfield is projected to produce 320,000 barrels of oil per day.

CNPC signed a memorandum of considerate with National Iranian Oil Co in 2009, promising to pay 90 % of development costs for the South Azadegan oil field while taking ownership of a 70 % stake. An Iranian official said the project needed investment of up to $2.5 billion

Comments

Related Articles
  • China, ECOWAS agree on strategic mechanism for effective cooperation

    2014/06/13 ECOWAS and China have agreed to establish a strategic consultative mechanism that will provide the framework for defining and implementing their cooperation for better effectiveness. The agreement was reached on Monday during a working visit to the ECOWAS Commission, Abuja headquarters, by a three-member Chinese delegation, led by Lu Shaye, Director General, African Affairs Department, in the Chinese Ministry of Foreign Affairs. This comes barely a month next both parties signed a Memorandum of Considerate (MoU) under which China will provide US$5 million dollars in “deployable headquarters equipment” to the ECOWAS Standby Force (ESF). As well during the conference, China offered US$200,000 in capacity building support to ECOWAS, one of the five priorities identified by the delegation, to enable the organization realize the objective of its ongoing institutional reform and repositioning for better efficiency.
  • China Mobile to buy into True

    2014/06/10 True Corporation's almost decade-old quest for a strategic partner is over as it forged an alliance with world telecom giant China Mobile International Ltd (CMI) to support its ambitious regional increase. Under the agreement, CMI, a all owned subsidiary of China Mobile Communication Co, will pay 28.6 billion baht for an 18% stake in Thailand's leading telecommunications conglomerate, backed by billionaire Dhanin Chearavanont. A partnership arrangement was signed yesterday in Bangkok. authentic will issue 10.077 billion new shares to existing shareholders and CMI at a price of 6.45 baht per share. Assuming full placement, the share issue will raise 65 billion baht in capital for the company.
  • APG is to spend $650m (€477m) on a 20% stake in Chinese warehousing developer

    2014/05/29 APG is to spend $650m (€477m) on a 20% stake in Chinese warehousing developer and operator e-Shang as part of a joint venture agreement. The Dutch pension fund investment manager’s stake gives it exposure to China’s logistics sector. The partnership will invest in and develop logistics assets across China. Sachin Doshi, APG chief of non-listed real estate for Asia-Pacific, said the investment manager had watched the sector “closely” in recent years as it experienced the increase of third-party logistics, e-commerce and the evolution of domestic consumption patterns.
  • Economic slowdown weighs on China retailers

    2014/05/28 China’s slowing economy, a crackdown on corruption, and the rise of online shopping are increasingly eating into earnings for some of the country’s traditional retailers – hitting sales at bricks and mortar stores such as shoe shops and supermarkets. Footwear chain Belle International and supermarket operator China Resources Enterprise both blamed a drop-off in economic increase as they reported sluggish earnings this week. “With the economy continuing its structural rebalancing and slower increase becoming the new normal, consumer confidence has been low and consumer sentiment weak,” Belle said in a statement to the Hong Kong stock exchange. The company, which has additional than 20,000 outlets across China, is a key distributor for western sports brands such as Nike, Adidas and Puma. Revenues at its footwear business grew 5 % in the 14 months through February, which the company said was “significantly lower than prior years”.
  • The gas transaction announced last week saw agreement between Russia and China next 10 years of negotiation

    2014/05/28 The gas transaction announced last week saw agreement between Russia and China next 10 years of negotiation. The implications of Russia's turn eastward to seek a new energy partner should raise concerns in Europe over its own gas supply and wider energy security. Gazprom's share of Europe's gas market reached approximately 30% in 2013. As the Ukraine crisis has soured relations between Russia and Europe, both sides are looking to diversify. Europe's need to diversify away from Russian gas is hardly new. Russia's tendency to use gas as a political tool to put pressure on Ukraine and Europe has demonstrated the risks of relying on one partner. Additional globally, growing concern around climate change and its impact on national security as a "threat multiplier" has lent support to the world's reduced use of fossil fuels. From presently on events in Ukraine and the Sino-Russian gas transaction have accelerated the urgency with which Europe needs to seek new energy sources.