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CNPC to develop Azadegan oilfield

By Xiao Wan (China Daily)
Updated: 2009-01-16 07:45

China National Petroleum Corp (CNPC), the country's largest oil and gas company, signed a $1.76 billion agreement on Thursday to develop an oilfield in Iran.

The company will develop the North Azadegan oilfield, located in Iran's western province of Khuzestan. The field has estimated reserves of 6 billion barrels of oil and can produce 75,000 barrels per day for 25 years, according to the Iranian Oil Ministry.

The deal is in the form of buy-back terms, under which CNPC will develop the field and hand over operations to Iran. CNPC will also receive payment from oil production for a few years to cover its investment.

CNPC will develop the oil field in two phases. The period for the development and reimbursement for the first and the second phase would be about 12 and 17 years, the company said.

Output at the North Azadegan oil field is expected to reach 150,000 barrels per day when both the phases are completed, it said.

Currently CNPC's overseas projects are mainly in Africa, Central Asia, North America, the Middle East and Asia-Pacific.

By the end of 2008 the company had extended its overseas business to 28 countries, with 73 projects.

Last November CNPC signed a $2.9 billion agreement to develop an oilfield in Iraq.

CNPC will use advanced technologies to increase the oilfield's manufacturing capacity to 25,000 barrels per day within three years, and to 115,000 barrels per day within six years.

Once the field comes into operation, it will provide fuel for nearby power stations, and greatly relieve Iraq's current power shortage. It will also create job opportunities and increase Iraq's oil exports, said a company statement.

(For more biz stories, please visit Industries)

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