Looking ahead: CNPC
CNPC 'strikes South Azadegan deal'
China National Petroleum Corporation (CNPC) has signed a memorandum of understanding (MoU) with the National Iranian Oil Company (NIOC) over the South Azadegan oilfield, and is set to take a 70% stake in the field in return forcovering 90% of development costs, according to reports.
A report published by the Iranian Oil Ministry's news service Shana did not disclose financial terms, but Naji Sadouni, managing director of NIOC's Oil Engineering & Development Company said in an earlier Shana report that the project needs investment of up to $2.5 billion.
However, a CNPC manager based in Beijing told Reuters today that the MoU was actually signed earlier this year and there has been no real breakthrough in talks with the oil ministry since then.
"The MoU is not a binding contract, and we are still negotiating with NIOC about specific details," the CNPC source, who declined to be named because he was not authorised to speak to the media, told the news agency.
He said that CNPC is keen to complete the deal but added that NIOC seemed reluctant to relinquish control of the oilfield.
South Azadegan could produce 260,000 barrels of oil per day.
Japan's Inpex has a 10% stake in the field, Sadouni added.
CNPC won a deal in January to develop the North Azadegan oilfield. The deal is worth $2 billion in its first phase. Under the first phase lasting 48 months, the capacity would reach 75,000 bpd and the tenure of the project is 12 years.
Iranian media also reported in June that CNPC signed a $4.7 billion deal with NIOC to develop phase 11 of South Pars gas field, though CNPC officials have kept mum on the deal.