Sunday, March 13, 2011

China invests USD 6bn in Iran oilfields


China invests USD 6bn in Iran oilfields
Sat Mar 12, 2011 5:9PM
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The Azadegan oil field has reserves of 42 billion barrels.
China will invest more than USD 6 billion for the development of Iran's “giant” north and south Azadegan oilfields, Iranian deputy oil minister has said.


“Separate contracts have been signed with Chinese companies for the development of North and South Azadegan oilfields,” Ahmad Qalebani was quoted by Mehr News Agency as saying.

“The complete development of these two giant oilfields requires more than USD 6 billion which cannot be funded by a domestic contractor,” he said.

Qalebani added that the contractor for the two oilfields was the same Chinese company, which he did not name.

The Azadegan oilfield, which lies in southwestern Iran, is one of the world's largest, with reserves of 42 billion barrels.

In 2009, China National Petroleum Corp (CNPC) signed a deal with the National Iranian Oil Company for the development of South Azadegan oilfield, which Iran said needed USD 2.5 billion in investment.

In the same year, CNPC also won a deal to develop North Azadegan oilfield. That deal was worth USD 2 billion in its first phase.

AKM/HGH/MMN

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