Baku, Azerbaijan, Aug. 6
By Fatih Karimov – Trend:
The National Iranian Oil Company (NIOC) cancelled an oil exploration deal with Chinese Sinopec, Mehr news agency reported Aug. 6.
The contract for oil and gas exploration and development of Garmsar block in central Iran was cancelled due to failure to obtain environmental permissions, an official with the NIOC said on condition of anonymity.
The two sides agreed to terminate the deal, the official said, adding the Chinese side fulfilled some of its commitments under the deal including carrying out studies and seismic activities in certain areas.
He further said that full drilling of exploratory wells in the block was impossible due to lack of needed permissions from the Iranian Environmental Protection Organization.
The Garmsar field, covering an area of 12,183 square kilometers, was one of 16 blocks the NIOC offered to international oil companies under the revised buyback terms.
The NIOC and the Sinopec signed a contract on exploration and development of oil and gas fields in Garmsar in 2006.
Under the deal, worth $50-70 million, Sinopec was in charge of conducting geological surveys, carrying out 2D seismographic measurements in a 700 square kilometers area, and drilling two exploration wells.