National Iranian Oil Company (NIOC) had promised the field to Sinopec under a 2004 agreement that required the Chinese company to develop the field and buy 10 million tonnes of liquefied natural gas (LNG) a year over 25 years.
However, the deal was postponed due to a disagreement over the rate of return for investors.
India’s ONGC Videsh was in talks with Iran earlier in 2007, to replace Sinopec on the project (MEED 17:8:07).
Sinopec will invest about $2bn in the field’s development with the contract to start immediately, according to Gholamhossein Nozari, Oil Minister for Iran.
Nozari said the first phase of development over four years would produce 85,000-barrels-a-day (b/d) with the second over the next three years providing an additional 100,000 b/d, totalling 185,000 b/d from 137 wells.
The Yadavaran field has oil reserves of 18.3bn barrels with about 3.2bn barrels recoverable, while its gas reserves amount to 12.5 trillion cubic feet, with 2.7 trillion recoverable.