CNPC Gears Up for South Pars Phase 11

According to Reuters, China's CNPC has finalized an agreement to participate in the development of the South Pars gas project. Iran reportedly awarded the $4.7 billion deal to the Chinese oil major at the end of 2009.

Operated by the National Iranian Oil Company, the South Pars development has been segmented into 24 phases. As part of Phase 11, CNPC will commence drilling in the massive gas field as early as March, Reuters said, citing an unidentified executive.

Located on the Iranian border with Qatar in the Persian Gulf, South Pars is the largest gas field in the world with recoverable reserves estimated at 14 trillion cubic meters of natural gas and 18 billion barrels of condensates.