Naji Sa'douni, the managing director of Iran's Petroleum Engineering and Development Company said that China will invest $2.5 billion in developing the South Azadegan oil field in the southwestern province of Khuzestan. The current output of the oil field is 55,000 barrels/day but is expected to reach 320,000 b/d upon the completion of the first phase and up to 600,000 b/d upon the completion of the second phase [No projected date of completion was given]. The Azadegan oil field's reserves are estimated by the Iranians at 42 billion barrels.

Iran and China are also close to signing a $7-billion deal to cooperate in the construction of two refineries in the southwestern city of Abadan and the central city of Isfahan.

[Editor's comment: We have reported recently that China has entered into an agreement with the Islamic Republic to construct a number of major railroad lines at a cost of $4 billion. China is also the principal importer of Iranian crude.]

Source: Press TV, Iran, February 26, 2011