TEHRAN (MEHR - Trend )
The North Azadegan oilfield's development contract will take effect next month and executive operations will start in the near future.
China National Petroleum Corporation (CNPC) and the National Iranian Oil Company (NIOC) signed a $1.76 billion agreement in January 2009 to develop the oilfield in Iran, SHANA reported on Sunday.
According to the agreement, the Chinese company has undertaken to develop the field in two phases. The start of second phase will be dependent on presenting a comprehensive plan by CNPC and its endorsement by the NIOC.
The deal is in the form of buy-back terms, under which CNPC will develop the field and hand over operations to Iran. CNPC will also receive payment from oil production for a few years to cover its investment.
On average, 75,000 barrels of oil will be extracted from the field within 25 years.
The North Azadegan oilfield is located in Iran''s western province of Khuzestan. The field has estimated reserves of 6 billion barrels of oil and can produce 75,000 barrels per day for 25 years, according to the Iranian Oil Ministry.
Output at the North Azadegan oil field is expected to reach 150,000 barrels per day when both the phases are completed, it said.
CNPC has also offered proposals to NIOC for the development of the South Azadegan oilfield.