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Chinese Company Wins First Drilling Contract in Iran
China National Petroleum Corporation (CNPC) on Sunday won its first contract of US$85 million to drill 19 gas wells in southern Iran.
The drilling project was the first of its kind put on international tender by the National Iranian Oil Company (NIOC) and the first one won by a Chinese company since the 1979 Islamic revolution.
Under the contract, a consortium formed by two affiliated companies of the CNPC, China Petroleum Technology Service LTD (CPTS) and China Petroleum Technology Development Company (CPTDC), and Iran's Mostazafan and Janbazan (the Oppressed and Disabled) Foundation will carry out the project in a time span of two years.
The CNPC will provide necessary technology and equipment to help the NIOC to drill the wells with an aim to boost Iran's gas production. The project was estimated to have a daily output of 860 million cubic feet (about 24.08 million cubic meters).
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.
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