Khaleej Times quoted Mr Gholam Hossein Nozari oil minister of Iran as saying that Iran and China’s Sinopec could sign a long awaited final multi billion dollar agreement for the development of the Yadavaran onshore oilfield.

Mr Nozari said that “Iran could probably sign a contract with China’s Sinopec to develop Yadavaran soon.” Mr Nozari refused to disclose the final financial details.

Under the MoU, China is likely to have a 51% share in the project. The agreement also involves China’s purchase of an annual 10 million tons of Iranian liquefied natural gas for 25 years, beginning in 2009.

Iran has already started work to exploit certain wells at the Yadavaran and Azadegan oil fields before major international deals are signed.