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Iran Cancels $2.5 Billion Chinese Oil Contract

Iran's official IRNA news agency says that Tehran has canceled a $2.5 billion deal with a Chinese state oil company because of what Iran says are delays in fulfilling its contractual obligations.

The April 30 report says Iran’s oil ministry had warned the China National Petroleum Corporation earlier this year that it was defaulting on the terms of a contract it signed with Tehran in 2009 for the development of the giant Azadegan oil field in southwestern Iran.

The ministry said it gave the Chinese firm 90 days to meet those obligations.

It says that when the Chinese firm failed to take the necessary action, Iranian officials decided to terminate the project.

There was no immediate response to the report from the Chinese state firm or officials in Beijing.
Based on reporting by AP and IRNA