Sinopec group agreed in 2004 to take the lead in developing Yadavaran field and to buy 10 million tonnes of liquefied natural gas (LNG) a year for 25 years. But talks to finalise the contract have been protracted.
Chinese officials have said tough commercial negotiations, not a threat of more UN sanctions on Iran because of its disputed nuclear plans, had delayed the agreement. Financial details of the contract were not immediately available.
Washington, which is leading international efforts to isolate Tehran over its atomic activities, has sought to discourage international companies from investing in one of the world's largest oil exporters.
China has so far been reluctant to back a US drive for further sanctions against Iran, which is Beijing's third-largest supplier of imported crude oil, behind Saudi Arabia and Angola.
Yesterday's deal was signed by Sinopec international exploration and production unit head Zhou Baixiu and Iranian deputy oil minister in charge of international affairs Hossein Noghrehkar Shirazi, the Yadavaran field is expected to produce 300,000 barrels per day of crude.
Via: Gulf Daily News
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