Iran’s Petroleum Engineering Development Company (Pedec) has ratified a development plan with China National Petroleum Corporation (CNPC) to develop the North Azadegan oil field which holds about 6 billion barrels of crude.

Pedec created a joint management committee with CNPC to produce oil from the field, according to Iran’s state-run Shana news agency.

Iran is expected to give final approval in early September.

CNPC will develop the field in two phases. The development of the four-year first phase is expected to cost $1.8bn (MEED 15:1:09).

The second phase is dependent on National Iranian Oil Company’s approval of a subsequent development plan.

The two firms expect to extract 75,000 barrels a day (b/d) from the field over 25 years. The repayment of costs for developing the oil field in phase one and two is expected to last 12 and 17 years respectively.