TEHRAN, June 12 (UPI) -- The Chinese National Petroleum Corp. announced plans to begin drilling operations at the Azadegan oil field in Iran, one of the largest in the world.
CNPC said it signed a $2 billion agreement with Iran to develop the North Azadegan oil field, the officials Islamic Republic News Agency reports.
The announcement says CNCP is waiting for approval from Iran to implement the deal to produce 75,000 barrels of oil per day from the north field over the next four years.
The field along the Iraqi border holds estimated reserves of around 33.2 billion barrels of oil. A report on the Iranian Petroenergy Information Network says Chinese companies are playing a role in a $3.7 billion project at a gas refinery in Isfahan meant to boost production there.
Iran says it reserves the right to develop the North Azadegan field for domestic consumption purposes.
Iran provides 14 percent of the Chinese demand for oil.