Questions in Iran over CNPC's South Pars role

Sanctions: pedestrians are seen outside Iran’s foreign exchange market in Tehran

CHINA National Petroleum Corporation (CNPC) is continuing to work on the $4.7 billion South Pars Phase 11 gas project in Iran, but may drop out if political uncertainty persists and Iran insists on a liquefied natural gas link, according to Chinese sources.

CNPC’s controversial role in sanctions-hit Iran was back in the spotlight this week following a media report from Tehran quoting Oil Ministry sources as saying that the company had pulled out of the development, which it took over from France’s Total in 2009.

The Mehr news agency, citing information from the Oil Ministry, said over the weekend that CNPC had withdrawn its workers from coastal facilities near Bandar Assaluyeh after “unprecedented” delays in starting work.

The company had not even started preliminary work such as levelling land and putting up fences, Mehr said.

However,…

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