CNPC to develop Iran's Azadegan oilfield
China National Petroleum Corp (CNPC) signed a $ 1.76 bn agreement 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 bn barrels of oil and can produce 75,000 bpd 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 bpd 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 bn agreement to develop an oilfield in Iraq.
CNPC will use advanced technologies to increase the oilfield's manufacturing capacity to 25,000 bpd within three
years, and to 115,000 bpd 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 the company.
