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Belarus to withdraw from oil deal with Iran

17 August 2011 18:11 (UTC +04:00)

Baku-APA. Belarusian national oil company Belarusneft is withdrawing from the development project involving Iran’s Jofeir oilfield over differences with the state-owned National Iranian Oil Company, APA reports quoting Xinhua.

The 500-million-U.S.-dollar oil deal has been terminated as Belarusneft was producing 2,800 barrels of oil a day at the field, lower than the promised 3,500 a day.

Belarusneft’s Deputy General Director for foreign trade and production, Alexander Sharayev, told local media Wednesday that at the time when the tests were carried out at the field, the daily oil production target of at least 3,500 barrels seemed feasible.

However, it turned out later that the daily output was less than the figure as stipulated in the contract, he added.

Belarusneft is a leading oil company in Belarus, with over 40 years of experience of operation. It operates in Russia, Venezuela, Ukraine and Poland.

In March, the United States put Belarusneft on a list of sanctioned companies over the contract with Iran.