China Interested in Oil, Gas Projects

China is looking for opportunities to increase participation in Iran’s oil and gas development projects, the Middle East director at China’s National Petroleum Corporation said.

Zhou Zhang Ting made the statement on the sidelines of the signing ceremony of Iran’s preliminary $4.8 billion agreement with Total S.A. and CNPC to develop Phase 11 of the South Pars Gas Field in the southern Bushehr Province, IRNA reported.

Petropars, a subsidiary of the National Iranian Oil Company, is part of the project with a 19.9% stake. Total is the majority shareholder with 50.1% and CNPC has a 30% stake.

“We are ready to take part in Iranian oil and gas development plans on a broad scale,” Ting said, referring to the CNPC’s long history of cooperation with the oil-rich country.

“Since 1990, our company has been Iran’s partner and has implemented several projects in the country. CNPC has stood by Iran in hard times.”

Total says it can raise gas production from Phase 11 to around 51 million cubic meters per day in 20 years. Improving the rate of recovery is the most important aspect of collaboration with Total and CNPC.

Early production is expected to begin 40 months after the start of operations.

Phase 11 holds around 16 billion cubic meters of natural gas and some 834 million barrels of gas condensates, a type of ultra light crude.

  CNPC in Oilfield Talks

Tehran is engaged in negotiations with China’s major oil and gas companies, namely CNPC and Sinopec, on developing two joint oilfields, namely Yadavaran and North Azadegan, in the southern Khuzestan Province. CNPC is reportedly trying to take over the second development phase of North Azadegan Oilfield.

The state-run CNPC was handed the development of North and South Azadegan oilfields. It was booted out of South Azadegan in 2014 after repeated delays in fulfilling its contractual obligations, although it has fared better in the North project.

Sinopec also is in talks with NIOC on undertaking the second phase of Yadavaran joint field, the first phase of which was developed by the Chinese company.

Oil Minister Bijan Namdar Zanganeh said in May that Chinese firms will maintain their role in the second development phase of North Azadegan and Yadavaran oilfields based on their initial contracts to develop the two fields in the first phase.