Iran bumps French firm in favor of China for major energy deal
NICOSIA Ñ Iran has selected China to replace France in a major
natural gas development project.
The state-owned National Iranian Oil Co. has signed a contract with
China National Petroleum Co. to develop a section of the South Pars gas
field.
The contract, signed on June 3, ended years of Iranian waiting for
France's Total to implement its agreement with Teheran to develop Phase 11
of South Pars.
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"The signing of the cooperation agreement between Iran and China took
place as CNPC has replaced the French company Total," the official Iranian
news agency, Irna, reported.
Iran had given Total a June 2009 deadline to decide whether to implement
its memorandum of understanding to develop Phase 11. But officials said
Total could not continue the project out of concern of being slapped by U.S.
sanctions.
