Shanghai Zhenhua Heavy Industry (ZPMC) inked a deal worth $2.2 billion with Iranian Offshore Engineering and Construction Company (IOEC). Under the deal, ZPMC, the world’s largest manufacturer of heavy-duty equipment, should build 10 offshore jack-up drilling platforms and seven land drilling rigs by July 2010.

Last month, ZPMC obtained a credit line of $10 billion for five years from the Chinese government to fund its projects.

According to Shana.ir, Iran earlier signed a $4.7 billion deal with China National Petroleum Corporation (CNPC) to develop the upstream sector of South Pars Phase 11, saying it replaced Total because of the French company’s repeated delays. Total did not deny the report but said it was still involved in the project.

The French company was officially commissioned to develop Phase 11 of South Pars. However, Iran announced in March that it had found a new partner to replace Total in the project. The French company has been under US pressure to abandon cooperation in Iran’s energy projects.

Source: / Zawya /