Source: Tehran Times
Iran and China National Petroleum Corp. (CNPC) have come to terms for terminating a contract for developing the phase 11 of the South Pars gas field, located in the Persian Gulf, the Mehr News Agency reported.
A view of South Pars field
CNPC has been replaced with Iranian Offshore Engineering and Construction Company in the project.
CNPC has delayed frequently in starting the development plan of Phase 11 of South Pars gas field, while the deal has been signed 27 months ago, managing director of Pars Oil and Gas Company said in October last year.
"Iran is dissatisfied with CNPC's frequent delaying of Phase 11 of South Pars development," Mousa Souri added.
CNPC won a $4.7 billion contract to develop Phase 11 of the South Pars gas project in 2009. The Chinese company replaced Total SA, which had hesitated because of political concerns.
In September 2012, CNPC said it will not abandon Iran and the company is trying to get the rights to new projects in Iran's oil and gas sector.
CNPC, China's largest oil and gas producer, has four projects in Iran, namely the Masjed-i-Suleiman oil project, the North and South Azadegan oil fields, and phase 11 of the South Pars offshore gas field.
The South Pars gas field is shared by Iran and Qatar. The Iranian share, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.
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