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China's CNPC still involved in North Azadegan: Iran oil minister

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China National Petroleum Corp remains involved in the development of theNorth Azadegan oilfield in Iran although its performance is unsatisfactory,the country's oil minister Bijan Zanganeh said Tuesday.

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"We still have cooperation with the Chinese in some projects. We haven'tstopped working with them. In those parts that they were inadequate, we toldthem not to work there," Zanganeh said on the sidelines of an industry eventin Tehran on Tuesday. "For now, they are in North Azadegan."

When asked if he was satisfied with CNPC's work, Zanganeh said: "No."

The minister's comments come days after Iranian officials said CNPC hasbeen kicked out of the South Azadegan project because of lack of progress atthe field.

Oil ministry news service Shana reported last week that Tehran hadformally told CNPC it was being removed from the project while RokneddinJavadi, managing director of National Iranian Oil Co., said CNPC failed tomove the project forward after repeated warnings.

The company had been given a three-month deadline in January to speed upwork on South Azadegan or risk losing the contract.

CNPC was awarded the contract to develop North Azadegan and SouthAzadegan in 2009, the same year it was also awarded Phase II development ofthe South Pars gas field.

--Aresu Eqbali, newsdesk@platts.com

--Song Yen Ling, yenling.song@platts.com

--Edited by E Shailaja Nair, shailaja.nair@platts.com

Similar stories appear in Oilgram News See more information at http://www.platts.com/Products/oilgramnews