Sinopec is understood to have agreed to buy 160,000-barrels-a-day (b/d) of crude from National Iranian Oil Company (NIOC) throughout 2008, up from some 50,000 b/d in 2007.

As part of this week’s Yadavaran deal, Sinopec will invest about $2bn in the field with the contract to start immediately, according to Gholamhossein Nozari, Oil Minister for Iran.

Nozari said the first four years would produce 85,000 b/d with a second phase 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 being recoverable.