16 May 2016 - 15:21
  • News Code: 260911
China to Develop North Azadegan, Yadavaran Oilfields

TEHRAN, May 16 (Shana) -- Iranian Minister of Petroleum Bijan Zangeneh said Chinese companies will develop phase II of North Azadegan and Yadavaran oil fields.

"Phase II development of these fields will continue under preliminary contracts (buyback deals)," said the official. 

Addressing reporters after a meeting with Deputy Administrator of National Energy Administration of China Zhang Yuqing in his Tehran office, Zangeneh said Iran regards China as a strategic partner in oil, gas and petrochemical sectors and this is something they (the Chinese) are pretty aware of.

He said there have been glitches in fulfillment of some projects by Chinese contractors in Iran in the past and these issues were discussed in this meeting. Development of Masjed Soleyman, North and South Azadegan oilfields were among the projects that were handed over to Chinese companied for development but did not proceed as it was planned.

"The two sides have agreed to pursue these matters to solve the remaining problems," he said.

The official said Iran has agreed to cede development of North Azadegan and Yadavaran oilfields to Chinese developers, but the Chinese side "must pull themselves together first". 

He said Iran is ready to hold talks with Chinese companies in a framework confirmed by Iran about development of phase II of North Azadegan and Yadavaran oilfields under newly-developed oil contract model. 

"Phase two development of these fields will continue under the preliminary deals that were signed with Chinese companies," he added.

Asked whether the master development plant (MDP) of phase two of North Azadegan and Yadavaran will be carried out by Chinese companies, Zangeneh said the MDP is preceding pretty well for Yadavaran but for North Azadegan, discussions are still under way.

He also said China is currently buying 600,000 bpd of crude oil from Iran which can be raised.

The Iranian Minister of Petroleum further added that construction of oil industry items and parts was also discussed in his meeting with Yuqing and Chinese companies will invest in Iran in this field. 

Issues like gas flaring, financial matters and financing petrochemical projects in Iran were also discussed in the meeting, he added. 

Renovation of Abadan Refinery in a project valued at €1.5b was also considered in the meeting and the sum will be procured by Chinese financiers, added Zangeneh.

"Chinese companies can also join development projects over new oilfields in Iran whether independently or as joint ventures with European and Asian companies under the new oil contract model," he added. 

He also said that Chinese firms have indicated readiness to join Iran's mini-LNG and LNG projects and have said they will offer their proposals to Iran in this regard. 

News Code 260911

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