TEHRAN - Managing Director of the National Iranian Oil Company (NIOC) Ahmad Qalebani said Sunday that Russia's Gazprom company has been dropped from Iran's Azar oil field development project and will be replaced by a consortium of Iranian companies, the local satellite Press TV reported.

"Domestic contractors whose names will soon be announced will form a consortium for the (development of) the field," Qalebani was quoted as saying.

He said that Gazprom failed to meet its commitments for the development of the field shared with Iraq and did not heed the numerous warnings it received from NIOC, said the report.

"The conclusion was reached to end cooperation with the company in Azar oil field and reassign the project to domestic contractors," he added.

According to the report, Azar oil field spans an area of 482 square kilometers in southeast of the Mehran city in Iran's western province of Ilam. The field has seven development wells, which are expected to yield around 65,000 barrels of crude oil per day.