File photo shows the Reshadat oil field's production platform in the Persian Gulf.
The National Iranian Oil Company (NIOC) has suspended a contract worth USD 107 million for the development of an Iranian oil field by the Italian oil company, Edison.
The contract was related to exploration and development operations involving Iran's Dayyer oil field in the southern Bushehr Province, Mehr News Agency reported on Saturday.
Dawdling by the Italian company in developing the field and its failure to meet its contractual commitments have been mentioned as the main reasons behind NIOC’s decision to revoke the contract.
The deal was concluded about six years ago at approximate value of USD 107 million for exploration and development of the offshore Dayyer oil field in the Persian Gulf.
Six years into the contract, the NIOC has finally decided to suspend the deal due to frequent delays and slow pace of the project’s progress.
Edison was under the obligation to study two-dimensional seismographic information on 7,500 square kilometers of the oil field and also drill an exploration well.
Dayyer is among Iran's 17 oil exploration blocks in the Persian Gulf. Exploration operations in the field are underway over an area of 8,500 square kilometers.
Iran holds the world's third-largest proven oil reserves and the second-largest natural gas reserves.
The country's total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of extractable oil. Moreover, heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.