Iran General NewsIran, China sign $5 bln gas deal

Iran, China sign $5 bln gas deal

-

ImageAFP: Iran on Wednesday signed a gas deal worth around five billion dollars with the China National Petroleum Corporation to develop a part of the giant South Pars gas field in the Gulf, the official IRNA news agency reported.

ImageTEHRAN (AFP) — Iran on Wednesday signed a gas deal worth around five billion dollars with the China National Petroleum Corporation to develop a part of the giant South Pars gas field in the Gulf, the official IRNA news agency reported.

"We signed a deal with China National Petroleum Corporation (CNPC) to develop the upstream sector of phase 11 in the offshore South Pars gas field," the National Iranian Oil Company (NIOC) managing director Seyfollah Jashnsaz was quoted as saying.

The deal is "worth 4.7 billion dollars and the aim of implementation of this project is to produce 50 million cubic metres (1.76 billion cubic feet) a day of natural gas and other products," Jashnsaz said.

The signing of the deal came after Iran repeatedly extended a deadline for completion of a 2004 initial deal with France's Total and Petronas of Malaysia to develop and produce LNG from phase 11.

Total had a stake of 50 percent plus one share in phase 11 of South Pars, which has total reserves of about 500 trillion cubic feet (14 trillion cubic metres) of gas — or about eight percent of world reserves.

"Due to repeated delays by Total in finalising the upstream deal we signed it with CNPC," Jashnsaz said. "But Total can continue talks on the downstream sector and the LNG project if it wants to."

Iran, OPEC's second largest oil exporter, also has the world's second largest natural gas reserves.

The delay was caused by a rise in cost of the project and international sanctions on Iran over its nuclear drive, which the West suspects is a cover for ambitions to build atomic weapons.

Western governments have put pressure on international firms to cut ties with Iran because of the nuclear standoff.

Latest news

Iran’s Unsolvable Air Pollution Problem

Air pollution will remain at dangerous levels and will increase for the next few days in most big cities,...

The World Must Acknowledge the Iranian People’s Right to Self-defense

Victor Hugo once said: “When dictatorship is a fact, revolution becomes a right.” Throughout history, this has been the...

Iran: 60% Of Population Is Poor

The livelihood baskets of the Iranian people are shrinking dramatically. This, in turn, has introduced new concerns to protect...

The implications of EU’s terrorist designation of the Revolutionary Guards (IRGC)

The European Parliament called on January 18 for the European Union to list Iran's Revolutionary Guards (IRGC) as a...

Iran’s Regime Is Hiding Human Rights Violations In Its Prisons

With more than four months into Iran’s latest round of nationwide uprisings, the brutality of the Iranian regime’s security...

How Internet Censorship Is Damaging Iran’s Economy

While in the last four months, internet access in Iran has been cut off or severely limited, the regime’s...

Must read

Israel sees new US poise, including military, to curb Iran

Reuters: U.S.-led efforts to curb Iran's nuclear program have...

Iran says no ‘technical problems’ in nuclear programme

AFP: Iran denied Friday that it faced any "technical...

You might also likeRELATED
Recommended to you