Iran has given an ultimatum to China National Petroleum Company International (CNPCI) to meet its deadlines on the development of South Azadegan onshore oil field.

Iran’s Deputy Oil Minister Emad Hosseini told the Chinese company is has three months to meet its obligations, calling CNPCI’s progress on the development “indefensible”, the Tehran Times reported.  

CNPCI has reportedly drilled seven of the contracted 185 wells on the field with production standing at 50,000 barrels a day (b/d). The field is located in the west of Iran on the border with Iraq.

China National Petroleum Company (CNPC) backed out of the phase 11 development of Iran’s South Pars offshore gas field in 2012 after the Tehran government blamed it for delays.

Last year, National Iranian Oil Company (NIOC) signed a $5bn with the local Petropars to complete work on the project.