MNA cited Mr Naji Sadooni MD of Petroleum Engineering & Development Iran as saying that China’s SINOPEC company started the Yadavaran oilfield’s BOD operation.

Mr Naji Sadooni said that “It is estimated that production in Yadavaran oil field will start in 4 years.”

China’s biggest refiner, Sinopec and Iran signed a USD 2 billion agreement on developing the Yadavaran oil field in 2007. The agreement completed a 2004 MoU for the state owned Sinopec Group to help develop the huge oilfield. Sinopec Group, the state owned parent of Sinopec Corporation agreed in October 2004 to take the lead in developing the Iranian oilfield and to buy 10 million metric tonnes of liquefied natural gas every year for 25 years in a deal worth as much as USD 100 billion.

The Yadavaran deal calls for the Chinese company to invest in developing the oilfield in 2 phases with the first phase to produce 85,000 barrels per day to be carried out in four years. The second phase, to produce an additional 100,000 barrels per day is to be completed in another three years.

Located in the southwestern province of Khuzestan, Yadavaran oilfield is one of the largest untapped fields in the world and is expected to have a potential output of 300,000 barrels per day of crude oil. It has 3.2 billion barrels of recoverable reserves, with recoverable gas reserves estimated at 2.7 trillion cubic feet or 80 billion cubic meters.