Iranian NIOC to fine Chinese CNPCI due to delay in South Pars project

Iran Materials 17 December 2011 13:35 (UTC +04:00)

Azerbaijan, Baku, Dec. 17 / Trend F.Milad/

The National Iranian Oil Company (NIOC) said it will fine China's National Petroleum Corporation (CNPCI) for its repeated delays in developing the South Pars gas field phase 11, Mehr news agency reported today.

CNPCI delayed frequently in starting the development plan of Phase 11 of South Pars gas field, while the deal was signed 27 months ago, Pars Oil and Gas Company managing director said earlier.

"Iran is dissatisfied with CNPCI's frequent delaying on Phase 11 of South Pars development," Mehr news agency quotes Mousa Souri as saying.

Earlier, Iran's Oil Ministry Rostam Qasemi asked CNPCI to develop Phase 11 of the South Pars gas field in a 35-month period, by warning it that otherwise, domestic or foreign contractors would replace it.

CNPCI won a $4.7 billion contract to develop Phase 11 of the South Pars gas project in 2009. The Chinese company replaced Total SA, which hesitated because of political concerns.

The South Pars gas field is shared by Iran and Qatar. Iranian share, which is divided into 29 phases, hits 14 trillion cubic meters of gas, or about 8 percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.