A setback in China and Iran bilateral economic ties

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A setback in China and Iran bilateral economic ties

ISLAMABAD -A setback in China and Iran bilateral economic ties as China National Petroleum Corp (CNPC) has pulled out of expected $5 billion Oil project in Iran.

Iran has finally replaced China CNPC with an Iranian company in development plans for the phase 11 of the South Pars gas field, a project stalled for more two years over American sanctions imposed on Tehran.

“Phase 11 of the South Pars has been sorted out and Petro Pars will expand the phase on its own,” said Bijan Namdar Zangeneh on Sunday, adding that the CNPC had withdrawn from the project.

CNPC had a major share in South Pars phase 11 development scheme, based on a agreement signed in July 2017 that also involved France’s Total and Petro Pars.

Total pulled out of the project last year to comply with unilateral American sanctions imposed on Iran. The CNPC had also suspended its investment which could reach more than $2.5 billion.