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Iran cancels $2.5 billion Chinese oil contract

TEHRAN - Iran has canceled a $2.5 billion deal with a Chinese state oil company over what authorities say were delays in fulfilling its contractual obligations, Iran's official IRNA news agency reported Wednesday.

 

The state-owned China National Petroleum Corporation had signed a contract with Tehran in 2009 to develop the giant Azadegan oil field in the southwest of the OPEC member state.

 

Iran's oil ministry had given the Chinese company 90 days to meet its obligations or face expulsion from the project. When that did not happen to Iranian satisfaction, IRNA says officials decided to terminate the project. (AP)