|Iran replaces China’s CNPCI with domestic consortium in oil project||
TEHRAN - 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.
On Tuesday, Iranian Oil Minister Bijan Namdar Zanganeh cancelled a $2.5 billion deal with CNPCI due to its repeated delays in the development of South Azadegan 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.
On February 18, Iran issued a 90-day ultimatum to the Chinese company over its continuous delays in developing the oilfield.
The Chinese oil giant has not changed its approach and failed to meet the deadline, even though, it was given an extra month to meet its obligations, NIOC Managing Director Roknoddin Javadi stated.
The quality of work by Chinese companies is “sometimes weak”, Ali Majedi, Iran's deputy oil minister for international affairs, said in an interview earlier this year with The Wall Street Journal. ‘If the embargo is lifted, they have to show how to be competitive,” he said.
On April 25, Press TV reported that a senior Iranian oil official has renewed Tehran’s warnings to CNPCI to meet its obligations in regard to a massive oilfield in Iran.
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.
Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader