Iran Warns of Cancelling $5bn South Pars China Deal

Iran has warned it may cancel a five-billion-dollar deal with a Chinese firm for developing Phase 11 of the giant South Pars Gas Field due to delays by the Chinese side.

Oil Ministry spokesman Alireza Nikzad-Rahbar said on that the long-delayed contract is likely to be terminated due to the lack of inclination from China National Petroleum Corporation (CNPC) to push ahead with the project, Press TV has reported. 

CNPC and National Iranian Oil Company (NIOC) had inked a $5 billion deal in 2009 to develop the field. The project was commissioned to CNPC after France’s Total and Malaysia’s Petronas pulled out. 

On behalf of NIOC, Pars Oil and Gas Company has issued a tender bid for drilling two exploration-appraisal wells and 10 development wells in Phase 11 of South Pars.