TEHRAN, January 14 (RIA Novosti) - The National Iranian Oil Company and China National Petroleum Corporation (CNPC) signed on Wednesday a $1.76 billion contract on developing Iran's North Azadegan oil field, local media reported.

The North Azadegan oil field is located in the Iranian southwestern province of Khuzestan on the border with Iraq. The oil field has estimated oil reserves of 6 billion barrels, making it possible to produce an average of 75,000 barrels a day over the next 25 years, Iranian media said.

The contract signed in Tehran covers the first stage of the oil field development. The contract's overall price for the first and second stages expected to be implemented over a period of 12 to 17 years is likely to reach about $4 billion, the Iranian media said.

This is the second large deal Iran has signed with China in the oil sector in recent years. In December 2007, Iran's Petroleum Ministry and Chinese oil company Sinopec signed a $2 billion contract to develop the Yadavaran oil deposit, which holds 18.3 billion barrels in proven reserves.