A Chinese company has won an 85-million dollar contract to drill 19 gas wells in southern Iran, official state media reported Monday. China National Petroleum Corp. (CNPC) was awarded the contract on Sunday by the National Iranian Oil Company in the first of its kind to be put out to international tender, the Xinhua news agency reported.
It is the first contract to be won by a Chinese company in Iran since the 1979 Islamic revolution.
Two affiliated companies of the CNPC -- China Petroleum Technology Service and China Petroleum Technology Development Co. -- will work together with Iran's Mostazafan and Janbazan Foundation on the project over the next two years.
The wells, aimed at boosting Iran's gas production, are expected to produce a daily output of 860 million cubic feet (24.08 million cubic meters) of gas.
Iran holds 15.7 percent of the world gas reserves, or over 22 trillion cubic meters, but it only produces 2.3 percent of the global gas output. – (AFP)
© Agence France Presse 2000
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