Chinese oil company CNPC has withdrawn from Iran’s flagship hydrocarbons project in a further blow to the Islamic republic’s economy, which has been hammered by US sanctions.
Iran’s oil minister Bijan Namdar Zanganeh told local reporters on Sunday that state-owned CNPC would no longer help develop phase 11 of South Pars, the world’s largest gas field.
He did not clarify when the Chinese group had made its decision or the reason for it. Iranian analysts said CNPC abandoned the project because of US sanctions and concerns over its interests in America, but Iran’s oil ministry said it could not provide further details.
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