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BBC Chinese: Iran Cancelled US$2.5 Billion Contract with China

BBC Chinese recently reported that the Iranian government just announced a decision to discontinue a US$2.5 billion oilfield development contract with PetroChina. The contract required PetroChina to deliver 185 oil wells in the South Azadegan oil field, which is located near the Iran-Iraqi border. However, according to the Iranian government’s official website, PetroChina only delivered seven. The Chinese vendor won the contract when the Western countries jointly sanctioned Iran. Iran claimed that a warning notification was sent to PetroChina 90 days before the contract termination. However, the Chinese company did not take any action. The Iranian government had another contract with PetroChina for developing the North Azadegan oil field. There has been no report on that contract. The Azadegan oil field is one of the largest oil fields in the world, with a crude oil reserve of 420 billion barrels.
Source: BBC Chinese, April 30, 2014