China National Petroleum Corporation International which had signed contract with Iran to develop the country’s South Azadegan oil field is evicted by Iran’s Oil Ministry for not abiding by agreed terms.
CEO of Iran’s National Oil Company Roknoddin Javadi said in an interview "After many times of verbal and written warnings and then a written notice to the Chinese contractor around the beginning of the winter last year, CNPCI promised to make progress in the project. After that, although one extra month was given to the company after a 90-day warning in order to reconsider the case, the contractor took no effective action.”
"So, due to the Chinese contractor’s lack of adherence to the terms of agreement during this time, the warrant to devoid the company’s contract in the development of the South Azadegan field was issued,” he added.
Javadi further pointed out "Not only in the South Azadegan field development project, but in other oil and gas fields as well we expect more action and adherence to the contract schedules by contractors; so that we are not forced to use our contracted rights to rescue the projects.”