ISLAMABAD -A setback in China and Iran bilateral economic ties as ChinaNational Petroleum Corp (CNPC) has pulled out of expected $5 billion Oilproject in Iran.
Iran has finally replaced China CNPC with an Iranian company in developmentplans for the phase 11 of the South Pars gas field, a project stalled formore two years over American sanctions imposed on Tehran.
“Phase 11 of the South Pars has been sorted out and Petro Pars will expandthe phase on its own,” said Bijan Namdar Zangeneh on Sunday, adding thatthe CNPC had withdrawn from the project.
CNPC had a major share in South Pars phase 11 development scheme, based ona agreement signed in July 2017 that also involved France’s Total and PetroPars.
Total pulled out of the project last year to comply with unilateralAmerican sanctions imposed on Iran. The CNPC had also suspended itsinvestment which could reach more than $2.5 billion.