Chinese contractor handed deadline for Iranian offshore project
July 3, 2012
Iran has given China National Petroleum Corp. International (CNPCI) an ultimatum to start development of Phase 11 of the offshore South Pars gas field by March 20, 2013.
Offshore staff
TEHRAN, Iran – Iran has given China National Petroleum Corp. International (CNPCI) an ultimatum to start development of Phase 11 of the offshore South Pars gas field by March 20, 2013.
According to a report by Pars Oil & Gas Co., CNPCI has delayed work repeatedly on Phase 11 since signing the $4.7-billion development contract 27 months ago. It was brought in to replace Total, which had hesitated due to concerns over the international embargo on trade with Iran.
Last month, Iran’s Oil Minister Rostam Qassemi announced that the country aimed to finish development operations on South Pars by the end of winter 2014.
“We had a very good year in the South Pars last year and our forecasts are the same for this year,” Qassemi said addressing an open session of the parliament. “We hope to close the file of South Pars by the end of (the Iranian year of) 93 (March 20, 2014).”
Qassemi said Iran’s current projects in the South Pars gas field carry a total investment of $56 billion, adding that Iran should allocate $20 billion annually to finish development of the field by the scheduled date.
