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China, Iran oilfield cooperation to help stabilize market
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Joint commercial oilfield development by China and Iran would help stabilize the oil market, China's Foreign Ministry spokeswoman Jiang Yu said in Beijing on Thursday.

Iran and China signed a US$1.76 billion deal Wednesday for the initial development of Iran's North Azadegan oilfield, Iran's official IRNA news agency reported. The deal was signed between the China National Petroleum Corp. and the National Iranian Oil Co.

In response to a question on the deal, Jiang said China and Iran have a "normal relationship" in relation to energy cooperation.

She said the oil companies cooperate under market conditions and the principles of equality and mutual benefit.

"This is of positive significance when it comes to the stabilization of the oil market," she said.

The North Azadegan oilfield, located in Iran's western province of Khuzestan, has estimated reserves of 6 billion barrels and can produce 75,000 barrels per day for 25 years, the IRNA report said.

(Xinhua News Agency January 15, 2009)

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