TEHRAN - The Belarusian national oil company Belarusneft is pulling out of developing Iran's Jofeir oilfield over differences with the state National Iranian Oil Co.(NIOC), the semi-official Mehr news agency reported on Tuesday.
"Belarusneft has brought to an end to all its oil activities in Iran since (late June), and it is predicted that the European company's contract on the development of phase one of the Jofeir oil field will be canceled on (Tuesday)," the agency said quoting unnamed NIOC sources.
The $500 million buy-back contract at the Jofeir oil field, in the southwestern province of Khuzestan on the Iraq border, was signed between NIOC and Belarusneft in September 2007.
The report said the differences between the two companies stemmed from "the manner of the field's production, Belarusneft compensation from the development of the field and some technical issues."
However, Naji Sadouni, the director of the state Petroleum Engineering and Development Co., said the Belarus company had failed to meet its contract commitments on the oilfield.