BEIJING (AFX) - China Petroleum & Chemical Group Corp (Sinopec) has signed an agreement with Iran's Oil Exploration and Service Company (OESC) to jointly develop the Garmsar oil block, the official Shanghai Securities News reporting, citing a Sinopec official.

The unidentified official was quoted as saying that the Garmsar block, one of 16 oil blocks that Iran offered for international tender in 2003, covers 12,183 square kilometers.

Sinopec was initially bidding for four blocks - Garmsar, Khorramabad, Kuhdasht, and Saveh, the report said.

The report added that Iran's Economic Council has approved the deal.

No further details about the transaction were provided.

China and Iran signed a memorandum of understanding in October 2004 under which Sinopec would develop Iran's Yadavaran oil field in exchange for buying 10 mln tons of Iranian liquefied natural gas annually for 25 years. The formal contract has not been signed.