Iranian, Chinese oil companies mulling expansion of ties
Tehran, Iran, August 21
By Mehdi Sepahvand –- Trend:
Iranian and Chinese oil companies are holding a series of talks to engage in closer cooperation, according to Qolamreza Manuchehri, deputy CEO of the National Iranian Oil Company (NIOC).
On the sidelines of the 16th joint economic forum between Iran and China held last week, talks were held with Sinopec and CNPC on developing Iranian oil fields, he told SHANA news agency August 21.
The Chinese companies were willing to invest in both upstream and downstream projects, he said, adding the second development phases of North Azadegan and Yadavaran fields were on agenda during the talks.
In the coming weeks, representatives of the two companies will travel to Tehran to discuss the commercial, financial, and technical aspects of the projects, the official noted.
Earlier, Iran canceled a contract with China’s CNPC to develop Yadavaran oil field after long delays.
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 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.