OREANDA-NEWS. July 16, 2012. A Chinese firm will invest 20 billion dollars in the development of Iran's Azadegan and Yadavaran oil fields, Oil Minister Rostam Qassemi said.

Qassemi, who was visiting Iran's Pertropars Company on Sunday said, "After 10 to 15 years of negotiations with the Chinese, the two sides reached some agreements on the development of Azadegan and Yadavaran oil fields."

He added that the Chinese oil firm has started executive works in both fields.

"Up to now more than 20 drilling rigs have been brought to the area in a bid to pave the ground for the production of 700 thousand barrels of oil per day," Qassemi said according to the oil ministry's website.

Underlining his ministry's firm resolve to take a final decision on shared oil and gas fields, he said, "Development contracts of twelve oil and gas fields, including Azar and Changuleh fields, have been finalized."

"Development of Azar and Changuleh oil fields has started," the official said, and added that some steps have been taken for the development of Darkhoveyn and Mansouri plus development of offshore oil and gas fields, including Farzad A.

Qassemi also said the necessary steps should be taken for the development of other oil and gas fields, including Farzad B, Esfandiar and other shared oil and gas fields.

"Iran holds rich oil and gas reserves," Qassemi said, and added that to make up for lagging behind the neighboring countries in production of oil and gas from the shared fields, it is necessary to make use of the capabilities of domestic companies and contractors and organize giant Iranian oil firms.

To achieve sustainable development in the oil industry, it is necessary to set up huge domestic companies, like Petropars, and big contractors should give more room to small contractors for participation in oil industry projects.