A senior Iranian oil official has renewed Tehran’s warnings to Chinese oil giant CNPCI to meet its obligations in regard to a massive oil field in Iran.
The latest warning to China National Petroleum Corporation International (CNPCI) was made by Petroleum Engineering and Development Company (PEDEC) Managing Director Abdolreza Hossein-Nejad.
During his visit to Yadavaran oil field, Hossein-Nejad expressed dissatisfaction with the performance of the Chinese contractor.
In 2008, CNPCI signed a USD 2.5-billion contract with National Iranian Oil Company (NIOC) to develop the Yadavaran field, which Iran shares with neighboring Iraq.
The Chinese company was supposed to raise production from Yadavaran oil field from 25,000 barrels per day (bpd) to 180,000 bpd and 300,000 bpd in two phases, but the field is currently producing only 26,000 bpd.
Earlier this month, CNPCI was given three months to meet its obligations regarding South Azadegan oil field or face expulsion from the project.
In February, Iran’s Oil Minister Bijan Namdar Zanganeh said no major progress has been observed in South Azadegan 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.
Last August, NIOC replaced China National Petroleum Corporation (CNPC) with the Iranian company, Petropars Ltd. (PPL), for the development of Phase 11 of the massive offshore South Pars gas field.
CNPC initially agreed with NIOC in 2009 to develop the only South Pars phase whose fate had not been decided.
(Source: Press TV)