Iran, Sinopec reach technical agreement for Yadavaran oil field
27 May 2007Platts Commodity News
Iran has finalized technical issues with China's Sinopec for developing the giant Yadavaran oil field, Iran's Press TV web site reported Sunday.
"The technical study has been finalized. We have some legal and economic issues that are pending," Press TV quoted National Iranian Oil Company managing director Gholam Hossein Nozari as saying.
Iran has been negotiating a deal on Yadavaran with Sinopec since 2004, when Tehran and Beijing signed a memorandum of understanding under which China would import 110 million mt of LNG over a 25-year period.
As part of the deal, Chinese integrated oil giant Sinopec was to undertake the development of the Yadavaran oilfield. Iran in return would be committed to selling 150,000 b/d of crude to China over 25 years from Yadavaran.
The report also said Royal Dutch Shell is still in talks over the possibility of taking a stake in Yadavaran.
Earlier this month Shell declined to comment directly on whether it would take a stake in the field other than to say it had provided technical support on the field in the past to Sinopec and continued to "take a close interest" in how the project might progress.
The Yadavaran field is expected to produce 300,000 barrels per day of crude when it becomes operational.