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

Related Articles
  • Chinese bank grants loan to Angola for construction of Soyo power plant

    2017/01/23 The Industrial and Commercial Bank of China will provide a loan of US$837 million for the construction of a combined cycle power plant in Soyo, Angola, an all equivalent to 85% of the cost, according to a government document. The document quoted by Portuguese news agency Lusa said the agreement between the government of Angola and the Chinese bank had been signed in the initial half of 2016, two years next the work began.
  • Macau receives 30 million visitors in 2016

    2017/01/23 Macau received over 30 million visitors in 2016, 28 million of which came from mainland China, and last year was the initial in a decade at the same time as the number of overnight visitors was higher than day visitors, said the director of the Government Tourist Office. Maria Helena de Senna Fernandes pointed out that while the total number of visitors saw annual increase of 0.8% to 30.95 million people and visitors from China remained virtually unchanged, increasing by just 0.1%, the number of international visitors increased by 7.9%.
  • Chinese ambassador to Angola calls for better investment climate

    2017/01/23 The government of Angola should seek to strengthen the investment climate in the country and improve it in order to attract additional foreign companies, the Chinese ambassador to Angola said on Thursday in Menongue. At the end of a short visit to Kuando Kubango, Cui Aimin, who did not provide figures, said that China will invest in the province in the areas of agriculture, hotels, tourism and construction of infrastructure.
  • China-Portuguese Speaking Countries Cooperation Fund presented in Macau

    2017/01/23 A presentation session of the China-Portuguese Speaking Nations Cooperation and Development Fund and the investment framework for investment in Portuguese-speaking nations is due to take place on 25 January in Macau, organised by the Macau Institute for Trade and Investment Promotion (IPIM). This session is co-organised by the Macau Economic Service, the Finance Services Bureau and the Macau Monetary Authority and support is provided by the Permanent Secretariat of the Forum for Economic and Trade Cooperation between China and Portuguese-Speaking Nations.
  • São Tomé and Príncipe should eventually become a member of Forum Macau

    2017/01/23 The restoration of diplomatic relations between São Tomé and Príncipe and China will enable all Portuguese-speaking nations to meet in Forum Macau, the Forum’s new Deputy Secretary-General told the Tribuna de Macau newspaper. Ding Tian, ​​who has just been appointed to that office by the Ministry of Commerce of China, cautioned, however, that diplomatic institutions had not from presently on been re-established, and there is therefore “no practical communication channel.”