National Iranian Oil Company (NIOC) has canceled its contract with South Korea's GS Engineering & Construction (GS E&C) for sweetening gas from the South Pars gas field's phases 6-8.
The Korean firm has not fulfilled its obligations 10 months after signing the contract, so the Iranian side decided to call off the deal, the Mehr News Agency reported.
The Korea's GS E&C and Pars Oil and Gas Company (POGC), a wholly owned subsidiary of the National Iranian Oil Company, had signed the $1.2 billion worth gas project last October.
The South Pars field is a gas condensate field located in the Persian Gulf. It is the world's largest gas field and is shared by Iran and Qatar. According to the International Energy Agency, the field holds an estimated 50.97 trillion cubic meters (1800 trillion cubic feet) of in-situ gas and some 50 billion barrels of condensates.
Iran holds the world's second-largest reserves of natural gas and the third-largest reserves of oil.