Chinese oil giants get new ultimatum

TEHRAN, May 08 (MNA) – PEDEC managing director has announced the issuance of written warnings to China’s Sinopec Group and CNCP on determining the status of two Iranian oilfields.

Managing director of the Petroleum Engineering and Development Company (PEDEC) Abdolreza Hosseinnejad touched upon the latest status of talks with China Petrochemical Corporation (Sinopec Group) and China National Petroleum Corporation (CNPC) on development of Yadavaran and North Azadegan joint oil fields; “currently, a total of about 75 thousand barrels of crude oil per day are being produced at North Azadegan field while the figure for Yadavaran oilfield is 85 thousand barrels.”

“Ahvaz oil pumping station will become fully operational in coming months to transfer the produced oil at the two joint field,” he added.

The official underlined “recently, a written warning was sent to CNCP to clear the developmental status of North Azadegan oil field.”

“The Chinese firm claims that developmental information of the second phase of North Azadegan field in not comprehensive,” recalled Hosseinnejad stressing “accordingly, all necessary technical information has been placed at disposal of the Chinese though they have so far refused to offer the plan to develop the joint field."

PEDEC managing director highlighted that China’s CNCP is willing to develop the second phase of North Azadegan but would not accept Iran’s technical conditions; “if the deadline is not met by the Chinese company, the development project will be carried out in the form of IPC contracts through an international tender.”

He said CNCP has not even deployed its technical experts to the region commenting “the development project aimed to reach a daily production of 75 thousand barrels though the Chinese deems it as impossible; we invited them to propose their technical offer for any increase in production capacity while they have not taken any measures.”

The official also pointed to the negotiation with Sinopec Group of China on expansion of Yadavaran oilfield explaining “in addition to pricing, we have set other conditions for China on development of the second phase of the joint field.”

“Overall, a package including 13 questions about the development of the second phase of Yadavaran oil field was delivered to Sinopec Group by the National Iranian Oil Company (NIOC),” he stressed.

Hosseinnejad said a deadline has been considered for the Chinese oil company to answer the questions; “if the Chinese oil giant fails to meet the deadline NIOC board of directors will make appropriate decisions of the development project.”

 

HA/3619187

 

News Code 116414

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