Iran Economy NewsIran says China to help develop Azadegan fields -...

Iran says China to help develop Azadegan fields – agency

-

Reuters: China will participate in developing Iran’s giant north and south Azadegan oil fields, work that is too expensive for an Iran firm to carry out, an Iranian official was quoted as saying on Saturday by the semi-official Mehr news agency.

TEHRAN (Reuters) – China will participate in developing Iran’s giant north and south Azadegan oil fields, work that is too expensive for an Iran firm to carry out, an Iranian official was quoted as saying on Saturday by the semi-official Mehr news agency.

“Separate contracts for developing the north and south Azadegan oil fields have been inked with the Chinese,” said deputy Oil Minister Ahmad Qalebani.

He also said the contractor for the two oil fields is the same company, which he declined to name, adding that the amount of investment for the development of the two fields would exceed $6 billion, which is too much for Iranian contractors.

“Thorough development of these two giant oil fields requires more than $6 billion and the possibility of procuring such an amount by a domestic contractor does not exist.”

Iran, the world’s fourth-largest oil exporter, faces tight foreign sanctions due to its disputed nuclear programme. The West fears it may be planning to make atomic bombs. Tehran denies this and says it needs peaceful nuclear technology to boost its oil and gas exports.

Western firms have been wary of investing in the oil and gas sectors of the Islamic state which need both capital and modern technology to be developed, on concern about the sanctions.

Iran has increasingly shifted to Asian countries to develop its oil and gas fields. State-owned Asian firms are less susceptible to Western pressure to stay away from the Iranian market and are eager for energy supplies to feed their future growth.

In 2009, China National Petroleum Corp (CNPC) signed a memorandum of understanding with National Iranian Oil Co, promising to pay 90 percent of development costs for the South Azadegan oil field while taking ownership of a 70 percent stake. An Iranian official said the project needed investment of up to $2.5 billion.

Earlier that year, CNPC also won a deal to develop the North Azadegan oilfield. That deal was worth $2 billion in its first phase.

(Writing by Ramin Mostafavi)

Latest news

The Role of Students and Universities in Iran’s Nationwide Uprising

In the national uprising of the people of Iran, which started in mid-September this year, the students played a...

Snapback Sanctions, a Must Response to Iran’s Human Rights Abuse and JCPOA Violations

The protests in Iran have been going on for more than two months, even though the regime is cracking...

Growing Disintegration Among Iran Regime’s Forces

Iran has been shaken by a wave of nationwide protests since mid-September. The trigger was the death of the...

Grim Tidings for Iran’s Regime After Approval of UN Fact-Finding Mission

After many discussions and debates, the United Nations Human Rights Council has approved a fact-finding mission to investigate the...

Iranian People’s Resistance Changed the Appeasement Policy

Soon after the new US government started its obligations in January 2021, hand in hand with the European governments...

Khamenei’s Disgraceful Campaign Against Piranshahr and Javanrud, Who Will Be the Loser?

On the 67th day of Iran’s revolution, the Iranian regime attempted to put a halt to the protests in...

Must read

Watchdog group: Iran to jail protest leader

AP: A media watchdog group says the founder of...

Lebanon peace resolution a ‘strategic setback’ for Iran, Syria: US

AFP: The UN resolution for Lebanon, if successful, will...

You might also likeRELATED
Recommended to you