CNPC in Iran CNPC has been present in Iran since 2004 and is engaged in oil and gas operations and oilfield services in the country. 　 Oil and Gas Operations Oilfields Services, Engineering and Construction Major Events 　 　 In 2009, we signed contracts with the National Iranian Oil Company (NIOC) to develop the North Azadegan Oilfield and the Phase 11 of South Pars gas field. MIS Oilfield MIS oilfield is located in the central part of a fold-and-thrust belt of the Zagros Mountain in the Persian Gulf, and has been developed for many years. In May 2004, CNPC acquired the MIS Oilfield and currently has a 75% holding in the project, while NESCO owns the remaining 25%. On August 20, 2007, CNPC received a notice from National Iranian Oil Company (NIOC) that approved the Supplementary Agreement of the Iran MIS project contract. This marked the beginning of the term of the MIS project. Drilling of well V-1, the project's first exploration well, started in November 2007. In 2009, the central processing station of MIS oilfield enjoyed smooth sailing, and the marginal Asmari formation showed great potential through reservoir research. Block 3 Block 3 (Kuhdasht Block) is located in the Zagros Basin, southern Iran, covering an area of 8,309 square kilometers. In May 2005, CNPC won the tender of Block 3 in Iran in the first round of overseas bidding, which is an integrated exploration and development project with a buy-back contract mode. In June 2005, the project was formally launched when the contract officially came into force. 2D seismic data acquisition was commenced thereafter. In 2007, the Block-3 exploration project saw a daily test oil output of 1,250 barrels from the first exploration well BAB-1. Preliminarily confirming an oilfield with a massive reserve of 100 million metric tons, this well was recognized as a commercial discovery well by NIOC. This was the first major discovery in the 16 exploration blocks opened to international bidding in 2003-2004. In 2008, promising oil and gas evidence were  encountered in multiple layers in key risk exploration well DB E-1. In 2009, the overall evaluation plan of Block 3 in BAB oilfield has been approved by National Iranian Oil Company and has successfully entered the evaluation period. Major breakthroughs were achieved in 3-D seismic acquisition, processing and interpretation.   　 Related News Jiang Jiemin meets with Managing Director of NIOC Seifollah Jashnsaz 　 In Iran, CNPC provides oilfield services ranging from geophysical prospecting, well drilling, logging and perforation to formation testing. In 2001, CNPC obtained a service contract from NIOC for drilling of 19 wells and workover of two wells. In 2003, we tested well KUSHK-2, achieving two successful one-trip operations. For the ultra-deep well RAMIN-7, ultra high pressure acidizing was completed successfully. In 2006, CNPC won the tender of the South Pars project to provide offshore well logging and perforating services with a contract term of three years. In 2008, CNPC acquired 3D seismic data with improved quality from complex mountains in Iran's Block 3. In the MIS project, we completed testing the electric submersible pump of horizontal well H-5, and produced an industrial oil flow satisfactory to the owner. In addition, a well logging project of NIOC South, an NIOC offshore project, and a PTTEP (PTT Exploration and Production Plc) project were newly developed. Drilling in South Pars The South Pars Field is located in southern Iran. Due to complex stratal configuration and well developed fractures and pores, severe circulation loss has been occurred in most well intervals, making it difficult to maintain normal drilling by using conventional mud. By using air drilling and air-foam drilling instead, circulation loss, blow-out, wellbore collapse, drill pipe sticking and necking had been tackled. Furthermore, the average drilling cycle was reduced from 230 days to 60 days through optimizing drilling parameters and drilling fluid formula. 　 Dec. 19, 2007 Well BAB-1 was recognized as a commercial discovery well by National Iranian Oil Company. Aug. 20, 2007 The MIS Project was formally launched. Jun. 08, 2005 The exploration and development contract for Block 3 officially came into force. May 13, 2005 CNPC won the tender for Block 3. May 25, 2004 CNPC inked an agreement on stock rights assignment for the Iranian MIS project with Canadian Sheer Energy Company.