Petropars to develop SP.11 alone as China pulls out

TEHRAN, Oct. 06 (MNA) – Iranian Oil Minister Bijan Zangeneh said Sun. that China’s CNPC International had pulled out of a contract to develop South Pars Phase 11, adding Petropars Company would develop the project alone.

In 2015, National Iranian Oil Company (NIOC) signed a contract with a consortium of Total, CNPC International and Petropars to develop the offshore project in Persian Gulf waters.

Following US’s withdrawal from the Iran nuclear deal back in May 2018 and imposition of new sanctions and restrictions for foreign companies working in Iran, Total pulled out of the contract.

On Sunday, Zangeneh told reporters that CNPC International had also dropped the project, meaning that Petropars would deal with the project on its own.

“The fate of the South Pars Phase 11 has been determined and Petropars will continue developing the project alone and by the end of the this [Iranian calendar] year (to March 20, 2020), the first jacket will be installed in the phase for a platform with 500 mcf/d of gas production capacity,” Zangeneh said during a visit to MAPNA Group’s turbine workshop near Tehran.

He further said that the issues concerning the pressure booster platform in the project would depend on the ongoing talks between MAPNA and other companies.

Asked why the project was not initially granted to Petropars Co., Zangeneh said, “We had intended to attract foreign capital for developing the project, besides the fact that the pressure booster platform was very important for us and Petropars was supposed to learn from other companies in the consortium.”

Asked whether CNPC International had pulled out of the project, he said, “Yes. It is no longer in the project.”

MNA/SHANA

News Code 150888

Tags

Your Comment

You are replying to: .
  • 1 + 4 =