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ENERGY TECH
Saudi ends 'largest' manuevers in its history
by Staff Writers
Riyadh (AFP) April 29, 2014


Iran oil ministry cancels $2.5 bn Chinese contract
Tehran (AFP) April 29, 2014 - Iran announced Tuesday that it was cancelling a $2.5 billion contract with China National Petroleum Corp. (CNPC), citing the company's failure to fulfil its obligations.

The first phase of the deal was for CNPC to drill 185 wells at the giant South Azadegan field, which straddles the Iran-Iraq border.

But the oil ministry said on its website that only seven wells had been drilled so far under the contract, which was signed in late 2009.

"Due to non-compliance by the Chinese company CNPC, the termination of the contract will be issued," said Rokneddin Javadi, managing director of the National Iranian Oil Company (NIOC).

China has become a bigger player in the Iranian oil market since Western governments imposed sanctions on Tehran as punishment for its controversial nuclear programme.

Under the South Azadegan agreement, CNPC was to target production of 600,000 barrels per day.

However, Javadi said that one month after a 90-day ultimatum was issued in mid-February, the Chinese company had taken no action, leading to cancellation of the contract.

Under a separate $1.76 billion agreement signed in January 2009, CNPC and the NIOC are developing the North Azadegan field, aiming to produce 75,000 barrels per day.

The Azadegan field is one of the world's biggest with reserves of about 42 billion barrels.

Another Chinese oil giant, Sinopec, is developing the Yadavaran field, which neighbours Azadegan.

Saudi Arabia ended military excercises Tuesday along the borders of Iraq and Kuwait, as well as other regions, in what the media described as the largest in the kingdom's history.

"We are preparing our armed forces to protect" the nation, daily Al-Eqtisadiah website quoted general staff chief Lieutenant General Hussein al-Qabeel as saying.

The armed forces "do not aim to attack anyone as this is not our wise government's policy," Qabeel added.

English-language daily Arab News said "tens of thousands of soldiers, backed by military jets, helicopters and ships as well as tankers and anti-missile systems, are participating" in the "largest military exercise in the kingdom's history."

The operation, in which elite National Guard and interior ministry units also took part, was carried out in the eastern, southern, and northern regions, Al-Eqtisadiah website aleqt.com reported.

It "aims at increasing the level of training and testing the capability of our armed forces in deterring any attack from any of these sides," the daily quoted Qabeel as saying.

In 1990, Iraqi president Saddam Hussein's forces invaded and occupied Kuwait. They were expelled the following year in the Gulf War.

Some of the exercises took place in Hafr al-Batin, which borders Iraq.

Relations have been strained between predominantly Sunni Muslim Saudi Arabia and Saddam's successor, Prime Minister Nuri al-Maliki, whose Shiite-led government is backed by Tehran.

In March, Maliki charged that Saudi Arabia and neighbouring Qatar were supporting terrorism worldwide, which drew harsh criticism from the kingdom, Iran's rival across the Gulf.

In November, Iraqi pro-Iranian Shiite group Jaish al-Mukhtar claimed it had fired six mortar rounds into a remote area of northeastern Saudi Arabia as a "warning" to the kingdom.

Meanwhile, three Saudi soldiers were killed by gunmen who fired from across the border with Yemen to the south, which is frequently crossed by smugglers and by Islamists seeking to join Al-Qaeda militants in the impoverished nation.

In 2009, Saudi forces fought a war against Shiite Huthi rebels on the Yemeni border.

The rebels, accused by Sanaa of being backed by Iran, frequently clash with Yemeni troops as they try to extend their influence over more areas in the north and towards the capital.

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Legal arguments begin in court on Tuesday in a compensation claim brought by about 15,000 members of Nigeria's Bodo community against oil giant Shell for the damage caused by two spills in 2008. Britain's High Court will consider the key legal issues ahead of a full trial expected in May 2015, according to the community's London-based law firm, Leigh Day. The two sides failed to reach a ... read more


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