Talking to Mehr News Agency, Akbar Torkan added that POGC and China National Offshore Oil Corp (CNOOC) will ink the contract by August 31, 2007.

CNOOC has already signed a memorandum of understanding with National Iranian Oil Co. (NIOC) on upstream and downstream development of the gas field which has been defined in four phases. 

According to the negotiations, the phases are to produce 20 million tons of LNG per year, he said.

The North Pars gas field is located 85km north of the giant South Pars gas field in the Persian Gulf and has an estimated 80 trillion cubic feet of natural gas.