TEHRAN, (Reuters) – Iran said it signed a $4.7 billion contract with a Chinese state firm yesterday to develop a part of a major gas field in the Gulf, replacing French energy company Total which it had accused of delays.
With Western firms wary of investing in the Islamic state due to its nuclear row with the United States, Tehran has increasingly been looking towards energy-hungry Asian countries for investment to help exploit its vast gas and oil reserves.
Despite the global economic slowdown, China is keen to ensure energy does not constrain future growth and force up the prices it pays.
Iran announced the deal with China National Petroleum Corporation (CNPC) on developing phase 11 of South Pars on the same day as its foreign minister was to meet French President Nicolas Sarkozy in Paris to discuss Tehran’s nuclear activity.
