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

China: CNPC leaves Iran’s energy projects


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
  • KMG,CNPC agree on expansion of technical cooperation

    2014/12/17 Kazakhstan’s national oil and gas company KazMunaiGas (KMG) and the China National Petroleum Corporation (CNPC) will jointly work on increasing the oil recovery and utilization of the accompanying gas at fields in southern Kazakhstan. The agreement on the expansion of technical cooperation in the oil and gas sector between CNPC and KMG will serve as a basis for this. The agreement was inked in Astana next a conference of the Kazakhstan-China Business Council with the participation of heads of governments of the two nations. The document stipulates that the KMG and CNPC will expand technical cooperation in the oil and gas industry, inclunding in boosting the oil recovery of the oil fields in the ‘South Turgai’ basin in Kazakhstan.
  • South Africa Set On Boosting Investments With China

    2014/12/06 President Jacob Zuma has arrived in China where he is leading a delegation of ministers and businesspeople on a National visit aimed at strengthening bilateral relations, the Presidency said on Tuesday. The two-day visit, scheduled for Thursday and Friday, signals a further consolidation of South African-Sino relations. This is President Zuma's second National visit to China. In 2010, he took 17 Ministers and about 300 businesspeople and signed the Beijing Declaration on a comprehensive strategic partnership with China.
  • Chinese, Cape Verde FMs Hold Talks

    2014/12/05 Chinese Foreign Minister Wang Yi and his Cape Verde counterpart Tolentino held talks on bilateral ties in Beijing Tuesday. Wang said it was significant to China to cooperate with developing nations, as it believed in the principle that all nations, large or small, were equal. Wang spoke highly of Cape Verde as its outlook on developing bilateral relationships was of a long-term and strategic view. Wang and Tolentino agreed that both sides should deepen political mutual trust, safeguard the common interests of developing nations and strengthen international and regional affairs coordination.
  • South Africa's President Jacob Zuma will be making his second national visit to China

    2014/12/05 South Africa's President Jacob Zuma will be making his second national visit to China between 4 and 5 December 2014. China-South Africa relations have steadily progressed at the bilateral level and beyond, since official relations were established in 1998 - and have been further upgraded to a Comprehensive Strategic Partnership since 2010. Indeed the upcoming national visit highlights the extent relations have evolved since Zuma's 2010 national visit. China has remained South Africa's major trading partner, with trade jumping 32% between 2012 and 2013. Investment is as well slowly diversifying, raising hopes of moving beyond a focus on the resource sector to areas that could generate local employment. However, South Africa, as a diversified economy with relatively strong institutional frameworks and a vocal civil society - and China's increased engagement on the continent - means there are not only areas of convergence but contention as well.
  • President Jacob Zuma arrived in China

    2014/12/05 At the same time as Zuma visited China in 2012, he was awarded an honorary professorship from Beijing's esteemed Peking University. The new Honorary Professor of International Relations used his acceptance speech to promote education initiatives between South Africa and China (the theme of the event), trumpet the government's successes and promote China's role in SA's development. Zuma flew back into China on Wednesday, his initial national visit since re-election, with an entourage in tow. The trip will last until Saturday and separate talks will be held with President Xi Jinping, Chinese Premier Li Keqiang, and top legislator Zhang Dejiang. Zuma is joined by a 100-strong business delegaaation ahead of the South Africa-China Business Forum on Saturday. According to Minister in the Presidency Jeff Radebe, 10 agreements are expected to be signed.