Iran enlists China for South Pars gas project

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Iran is moving to develop the remaining phases of its biggest gasfield without western help.

Tehran signed a US$4.7 billion (Dh17.26bn) “co-operation contract” in Beijing yesterday for the development of phase 11 of the South Pars field in the Gulf with China National Petroleum Corporation (CNPC), replacing the French energy group Total, Iran’s official IRNA news agency reported, quoting the head of the National Iranian Oil Company (NIOC).

IRNA said Seifollah Jashnsaz, the managing director of NIOC, had signed the deal after closing negotiations with CNPC in the Chinese capital. Total has a memorandum of understanding with NIOC for the project phase but had failed to reach an agreement on contract terms.