Azerbaijan, Baku, June 17 /Trend/
The China National Petroleum Corporation (CNPC) has postponed sanctioning Phase 11 of South Pars gas field project for two years and the contract between the National Iran Oil Company (NIOC) and CNPC will most probably be canceled, reported Mehr News Agency.
CNPC and NIOC signed a $5 billion contract to develop Phase 11 of South Pars gas field about two years ago to produce 100 million cubic meters of gas per day.
The CNPC should invest $5 billion gradually during 52 months in Phase 11.
The China National Offshore Oil Corporation (CNOOC) also delayed sanctioning the North Pars gas filed project under a $15 billion contract, signed in 2007.
South Pars oil and gas field is one of the largest in the world with holding half of Iran's total gas reserves (29.6 trillion cubic meters)and North Pars gas field reserves holds an estimated 1.63 trillion cubic meters of gas, too.
Most of foreign giant oil and gas companies such as Repsol, Shell, Petronas, Total, Gazprom,and others have halted their activities in Iran because of international sanctions imposed by UN Security Council and the West countries against Iran.
Iran, which is the world's second largest reserves of gas, is facing US sanctions over its nuclear program.
The U.S. Congress approved financial sanction against Iran in 2010 , which impos es strict conditions for foreign investors and financial firms and prevents them to invest more than $20 million in Iran oil and gas industries.