China Petroleum & Chemical Corp., or Sinopec, is pushing to start a new phase in an Iranian oil-field development, a plan Iran says it is likely to approve, according to people familiar with the project.
The push is part of a broader attempt by China and Iran to mend fences after the cancellation of a separate project.
Chinese state-owned company Sinopec is taking steps to start development activities in the second phase of the Yadavaran oil field, which is set to start next year. Delegates from Sinopec are due to travel to Tehran next month to discuss the plans, according to two people familiar with the company's Iran operations. The topics will include ordering equipment such as pipes.
In late April, Iran canceled a $2.5 billion deal with state-owned China National Petroleum Corp. following repeated delays at a giant oil-field project. The cancellation triggered speculation among Iran oil experts that privileged ties between Tehran and Beijing may be at risk.