TEHRAN - Iran welcomes foreign investment in the development of its South Azadegan oilfield, the managing director of the Petroleum Engineering and Development Company (PEDEC) of Iran said on Monday.
Although the development of the oilfield has been transferred to domestic contractors, but eligible and committed foreign companies are also welcomed to join the project, the Shana news agency quoted PEDEC Managing Director Abdolreza Haji Hossein-Nejad, as saying.
Iran has transferred the development of its South Azadegan oilfield to a consortium of domestic companies as China National Petroleum Corporation International (CNPCI) had been falling behind the schedule in fulfilling its obligations.
The oilfield is projected to produce 320,000 barrels per day (bpd) of crude oil in the first phase of its development.
On April 29, Iranian Oil Minister Bijan Namdar Zanganeh cancelled a $2.5 billion deal with CNPCI due to its repeated delays in the development of the oilfield.
CNPCI signed a deal with the National Iranian Oil Company (NIOC) seven years ago for the development of South Azadegan oilfield, which is shared with Iraq.
Iran’s production from this joint field is still standing at around 50,000 bpd, while Iraq is currently recovering 175,000 bpd of oil from its sector of this field and plans to raise its output to 400,000 bpd.
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