UPDATE 4-Iran says signs gas deal with China, replaces Total

Wed Jun 3, 2009 5:31pm BST
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* Iran signs South Pars gas contract with China - IRNA

* Total has no immediate comment

* Iran says Total can still negotiate on downstream work

(Adds quotes, analyst, detail, background)

By Zahra Hosseinian and Fredrik Dahl

TEHRAN, June 3 (Reuters) - Iran said it signed a $4.7 billion contract with a Chinese state firm on Wednesday to develop a part of a major gas field in the Gulf, replacing French energy company Total which it had accused of delays.

With Western firms wary of investing in the Islamic state due to its nuclear row with the United States, Tehran has increasingly been looking towards energy-hungry Asian countries for investment to help exploit its vast gas and oil reserves.

Despite the global economic slowdown, China is keen to ensure energy does not constrain future growth and force up the prices it pays.   Continued...

 
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