Iran General NewsIran warns of cancelling $5 bn China gas deal:...

Iran warns of cancelling $5 bn China gas deal: media

-

AFP: Iran has warned China it could cancel a much-delayed $5-billion offshore gas exploration contract in the Gulf, a news agency said on Monday. TEHRAN (AFP) — Iran has warned China it could cancel a much-delayed $5-billion offshore gas exploration contract in the Gulf, a news agency said on Monday.

“There is a possibility of cancelling the contract” signed in 2009 to develop the South Pars gas field — which holds around eight percent of the world’s gas reserves — Mehr news quoted oil ministry spokesman Alireza Nikzad as saying.

China has for years aimed to strengthen its economic relationship with sanctions-hit Iran, by filling the investment void left by departing Western companies.

But Iran has accused China of failing to fulfil its commitment and delaying its contractual obligations.

South Pars, a huge offshore natural gas field shared between Iran and Qatar, holds around 14 trillion cubic metres of gas, and Iran plans to use the “phase 11” project to fill its first-ever liquefied natural gas plant.

Mehr named China National Petroleum Corporation (CNPC), the Asian giant’s largest oil and gas producer and supplier, as the company contracted for the project.

Iran suspended a $16-billion contract with China last year for the North Pars gas field, saying the decision to let the Chinese develop North Pars rested on their effectiveness in developing South Pars.

Nikzad said that should the South Pars contract be cancelled, the development of the offshore gas field would be handed over to Iranian contractors.

“The Chinese side has stated it is not inclined to be part of the project’s development,” citing the “high risk” involved in offshore exploration, Nikzad added.

He said that a deal for another gas field would instead be discussed “in the near future,” without giving any details.

Major Western companies that had been operating in South Pars, among them France’s Total and Anglo-Dutch giant Shell, withdrew from Iran between 2007 and 2010 after international sanctions were imposed over Tehran’s controversial nuclear programme.

Iran, which has the world’s second-largest natural gas reserves after Russia, claims it is able to develop South Pars on its own by giving many of the projects to companies affiliated to its elite Revolutionary Guards.

Latest news

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...

Iran: Expensive Medicine, Cheap Human Life

A look at the equipment and weapons that the Iranian regime has been using against its people to suppress...

Who Is Abolqasem Salavati Iran Regime’s Killer Judge?

Last week, it was announced that the case of several people who were arrested during the Iranian People's uprising...

Iran Revolution Characteristics

More than two months have passed since the start of the latest round of protests in Iran against the...

Must read

Iran draws red line round enrichment at nuke talks

Reuters: Iran would refuse to discuss any suspension of...

Google warns of password-stealing campaign in Iran

AFP: Google on Wednesday said that it has been...

You might also likeRELATED
Recommended to you