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 smartphone sensation Xiaomi was getting bad press

    2015/05/03 It was only last December at the same time as Chinese smartphone sensation Xiaomi was getting bad press for a reported intellectual property trouble in India. Five months later, that story has faded, restored by a well-received product launch in the country in April along with even additional striking news: Esteemed Indian tycoon business leader Tata has bought a stake in the company. Terms weren’t disclosed. That quick reversal in perceptions and new partnership in India underscores how Xiaomi, a “startup” flush with experienced leadership at the top of the company, has been finding ways to challenge odds and advance in business. Though only five years old, its chief Lei Jun combines two decades of experience in the industry. Co-founders hail from Google, Microsoft and Motorola, bringing ideas about how small businesses can get ahead of entrenched ones. Xiaomi shook up smartphone sales in China, the world’s major market for the devices, in part by eliminating middlemen in its sales channels and passing savings from an online business model along to grateful, mostly young, consumers.
  • Competition from online grocers is one of the biggest threats to brick and mortar sales

    2015/05/02 From fast food to smartphones, from luxury goods to groceries, the way China shops — and what mainland shoppers want to buy — is changing rapidly. The changes are leaving foreign supermarket and hypermarket chains struggling to keep up by revamping store formats and selling additional groceries online, retail analysts say. On Wednesday Walmart announced a plan to turn round its declining sales in China by boosting store numbers by additional than 25 %, renovating existing shops and introducing a new online shopping app. The US chain has been hit by food safety scandals in China, along with rapidly intensifying competition from other large hypermarket chains and from new online grocers.
  • China to levy green vehicle incentives until 2020

    2015/05/01 According to new draft regulation published yesterday, the Chinese government is mulling the expansion of the current new-energy vehicle subsidies to 2020, up from the current expiration date set for the end of next year. The measures designed to support the new energy vehicles, China’s generic term for “green” autos that span from plug-in hybrids to battery and fuel cell electrics, are the new policy effort from the central authorities as the country battles the growing threat of pollution and snarling traffic. The subsidies, though designed to be gradually toned down during the period from 2016 to 2020, according to the draft rules seen on the Ministry of Finance’s website, may represent a great investment to companies that produce such models, such as BYD Co., China’s major producer of electric cars.
  • China ready to lower new energy vehicle support

    2015/04/30 The government of the world’s major auto market announced it would move to lower the subsidies of new-energy vehicles in the country, even as deliveries have not met the official estimate. The Chinese will curb the subsidies additional than before announced on new-energy vehicles, the country’s term for vehicles inclunding plug-in hybrids, battery and fuel cell electrics. According to a recent statement posted on the finance ministry’s website, the officials will curb the incentives on new-energy models by 40 % for the 2019 to 2020 period from the level mulled for 2016. The new figure is two times larger than the ministry envisioned back in December 2014.
  • Chinese stocks were a mixed bag on Wednesday morning

    2015/04/30 Chinese stocks were a mixed bag on Wednesday morning as banking shares were depressed by lacklustre initial-quarter earnings while resource companies surged on new tax reforms. China’s banking sub-index fell 0.9 %, following weak bank results showing additional evidence of a cooling economy and foreshowing earnings announcements by other major lenders later on Wednesday. Bank of Communications Co , the fifth-biggest lender, reported a sharp fall in initial-quarter net interest margin late on Tuesday, while Agricultural Bank of China Ltd (AgBank) , the third-major, posted its slowest quarterly profit increase in six years.