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Iran’s oil minister gives ultimatum to Chinese company

Oil&Gas Materials 8 October 2011 17:42 (UTC +04:00)

Azerbaijan, Baku, Oct. 8 /Trend, A.Gurbanova/

Iran 's Oil Minister Rostam Ghasemi gave deadline to Chinese company to complete development plan in Phase11 of South Pars, Mehr News Agency reported quoting Managing Director of Pars Special Economic Energy Zone Piruz Mosavi as saying.

"The oil minister stressed on accelerating development of phase 11 in South Pars," he said.

The Chinese CNPC will launch an office in Assalouyeh to hasten the process of developing gas project in South Pars.

Iran 's oil minister has demanded a new plan from Chinese company to complete the project in Phase 11.

According to Managing Director of Pars Oil and Gas Company Mussa Souri, the Chinese company will submit its plan to complete the development project next month.

The project in Phase 11 which is located on border with Qatar is highly important for Iran

After two years of signing $5 billion contract, the CNPCI has not started the development of mega gas project in Phase11 of South Pars.

The company invested $18 million last year in the project after Iran's ultimatums. However, it has not started the basic operation in Phase 11 of joint gas field with Qatar.

Officials of CNPCI said that they are facing financial problems to provide $5 billion required investment for the project

The joint South Pars oil and gas field is shared by Iran and Qatar; it is among the world's largest fields. Iran is expected to gain up to $130 billion in revenues annually.

The Iranian share, which was divided into 28 phases, has about 14 trillion cubic meters of gas (about 8 percent of total world reserves) and more than 18 billion barrels of liquefied natural gas resources.

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