China to develop two Iranian giant oil fields

ASTANA. KAZINFORM - Iran agreed to deliver development of two giant oil fields to Chinese companies based on new designed contracts, called Iran Petroleum Contract, or IPC, oil minister announced.

Development of the second phases of both North Azadegan and Yadavaran would be carried out by Chinese companies, Oil Minister Bijan Namdar Zanganeh said on May 16, Shana reported.

"Iran approaches to China as a strategic partner in oil, gas and petrochemical fields," he added.

Zanganeh didn't mention the name of Chinese companies, but Abdolreza Hoseininejad, CEO of Oil Engineering and Development Company told Fars in April that Iran seeks to reach a buyback agreement with Sinopec over the development of the second phase of Yadavaran field, however if agreement couldn't be reached, the project will be offered within the framework of IPC.

Once the second phase of the field is developed, its output will increase from the current level of 85,000 to 180,000 barrels per day, he said.

China's CNPC also has developed the first phase of North Azadegan and Zanganeh said in January that Iran may award phase two of the North Azadegan oilfield to CNPC for development.

China's CNPC and Iran's PEDEC have already signed an initial agreement to produce 25,000 barrels a day (bpd) from the field in the second phase.

IPC is aimed at introducing a framework that lays out the basic structure - and some details - regarding all future petroleum contracts in Iran. It was earlier announced that the country plans to boost oil production to 5.7 million barrels per day and gas output to 1.4 billion cubic meters a day by 2021.

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