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 TV Firm Gets New Chipset for Expansion in Africa

    2015/03/28 Chinese pay-television operator StarTimes said Monday it has deployed Conax certified Set-Top Box (STB) chipset solution from ALi Corporation to further expand their African markets. StarTimes, with branches in 26 African nations and operations in 14 nations, has accumulated nearly 5 million subscribers across Africa and ranks part the top three digital TV operators in the region. StarTimes chairman Pang Xinxing said the collaboration with world leading partners, ALi and Conax, helps them deliver optimized total solutions in terms of performance, security, and costs that drive DTV expansion in Africa.
  • China to Make More Efforts On Elephant Conservation

    2015/03/28 A Chinese official has said that China will make additional efforts on the fields of management, law enforcement, education and capacity building to help African nations battle elephant poaching. Meng Xianlin, executive director-general of Endangered Species of Wild Fauna and Flora Import and Export Management Office of China, made the remarks Monday next the African Elephant Summit in Kasane, Northern Botswana. China has as well strengthened law enforcement, Meng said next the conference, adding that in 2014, China worked together with 28 nations and international organizations where a lot of illegal wildlife trades were seized and involved criminals were captured.
  • Despite slowing growth, China in Africa for the long haul

    2015/03/20 China lowered its 2015 increase projections to “around 7 %” on 5 March - the slowest rate in 24 years - amid fears that a slowdown in the Asian powerhouse could dampen economic ties with Africa. But while request for commodities - which formed the basis of the China-Africa relationship so far - is set to slow, outward foreign direct investment (OFDI) trends on the back of China’s ‘New Silk Road’ grand strategy indicates that China’s focus on Africa is here for the long haul, according to analysis by South Africa’s Standard Bank. Chinese increase was projected to hit 7.4 % through 2015 before the downward revision was announced by Premier Li Keqiang. China’s economic fortunes are intimately tied to the ascendance of a lot of African economies over the completed decade. African commodities played a significant role in fuelling China’s average of 10 % increase over the completed five years, supplying raw materials for manufacturing and a booming real estate market.
  • China's Huayi Brothers Pacts With Major U.S. Film Company

    2015/03/19 China’s major privately run film production company, Huayi Brothers Media, says that it has reached a transaction to finance, co-produce, and release 18 feature films by 2017 with an unnamed US partner. The Beijing-based company did not identify its US counterpart but people familiar with the situation said it was Burbank-based STX Entertainment. The venture is not the initial co-production transaction Huayi has done in Hollywood, but it is — according to the film group — the initial time a Chinese company will take part in all process of Hollywood filmmaking, from investment to production and distribution, and get a cut of total world revenues from films in addition to the Better China distribution rights.
  • Tesla owners in China are a well-connected bunch.

    2015/03/07 For $104,000, Yu Hangmei expected a car that could, at the very least, be driven. What Ms. Yu said she got instead was a new electric Tesla Model S sedan and a malfunctioning charging station. While driving through her town in coastal Zhejiang Province recently, Ms. Yu, 45, realized that even though she had plugged in the vehicle, the battery was almost dead. “I thought next a day of charging it was fully charged, but turns out it wasn’t charged at all,” said Ms. Yu, an artifact exporter. Tesla owners need an electric charger specifically calibrated to the vehicle’s voltage and current requirements, still something of a rarity near her home. “Luckily I bumped into a fellow Tesla owner online who let me charge at his place. It took three hours.”