A Chinese delegation is in Tehran to revive negotiations on a major oil and gas exports deal worth more than 100 billion dollars, state television said. If sealed, officials say the agreement would mark one of the biggest foreign contracts ever for Iran, which holds the world’s second-largest oil and gas reserves and is often cautious about making significant trade deals with other countries. Chinese oil ministry officials are aiming to refresh talks for the sale of 250 million tons of liquefied national gas (LNG) and crude oil to China over a 25-year period, Iran’s deputy oil minister in charge of international affairs, Hadi Nejad-Hosseinian, was quoted as saying.
Iran signed in October 2004 a memorandum of understanding with Chinese Sinopec, Asia’s largest oil refiner, for exports of LNG and crude oil as well as development of Iran’s onshore Yadavaran oilfield in southwestern Iran. The deal gives Sinopec the right to purchase half of Yadavaran’s peak oil output – estimated at 150,000 barrels per day – over the contract’s span. Exploration wells in Yadavaran oilfield have led speculators to believe the reservoir holds more than 118 billion barrels of oil and 85.5 billion cubic meters of gas. Iran has strict energy sector contract regulations, and the Islamic republic’s constitution stipulates the “prevention of foreign economic domination over the country’s economy.” The energy sector is placed within the state sector, and foreign companies are barred from concession agreements and restricted to “buy-back” contracts. With concessionary basis or direct equity stake production-sharing agreements ruled out, the government worked out the buy-back formula – under which foreign companies were to be repaid their development costs and given an agreed rate of return from initial production.
Although Iran’s new Oil Minister Kazem Vaziri-Hamaneh recently proposed removing the country’s adopted buy-back formula, Nejad-Hosseinian said any deal with Chinese will be based on buy-backs. “The main existing problems with our buy-backs can be modified by some slight changes without taking much time, given using any new model will lead to delays in contracts under negotiations,” Nejad-Hosseinian told the state news agency IRNA. The deputy oil minister noted that the Chinese side is also expected to welcome the changes. Earlier this month, Hamaneh said he considered the country’s most common buy-back oil and gas formula as “problematic.” If signed, the China-Iran deal would not only mark China’s biggest deal ever with Iran but may also yield political benefits for the Islamic republic far sooner than commercial ones, as Iran is courting China’s favor on the UN Security Council. As a permanent member of the council, Beijing holds a veto over any potential action against Iran’s nuclear program. Tehran is under the threat of a referral before the council because the United States accuses it of using a civilian nuclear program to hide a quest for atomic weapons, charges Tehran vehemently denies.
Re: China bids to revive mega $100 billion Iran energy deal
A $200B agreement was signed last year it made monkey very upset but there isn’t much the chimp can do about it now can it… Speak of isolation..LOL.
Iran and China have signed a
preliminary accord under which
China would buy 10 million tonnes
a year of liquefied natural gas
(LNG) for 25 years in a deal worth
100 billion dollars,
** ISNA quoted Deputy Oil Minister
Hadi Nejad-Hosseinian as saying
the deal could eventually reach
15 to 20 million tonnes a year,
taking the total value to as much
as 200 billion dollars. **
Re: China bids to revive mega $100 billion Iran energy deal
Thanks for sharing. Wasn’t little Israel threatening Iran back then as well? As we know those 'fraidy cats have not have the guts to do anything despite all their boasts.
Re: China bids to revive mega $100 billion Iran energy deal
hey look at it this way, 6 million Sunnis have given hell to invader and terrorist just imagine what 60 million will do… LOL… quite reasonable grounds for wetting pants…no?
Re: China bids to revive mega $100 billion Iran energy deal
Hey man with wet pants! Soldiers who go thousands of mile from home and occupy other lands may have wet pants, but their opponents (subjects) have no pants. Period.
Iran and China signed here Wednesday an agreement in excavation Wednesday. The agreement was signed between Managing Director of Iran’s North excavation Company Heydar Bahmani and Deputy Managing Director of China’s COSL, Jo min Goa. COSL will be responsible for maintenance, repairs, and management of semi-floating Iran-Alborz platform to be set up in the Caspian sea for a three year period. The contract value is about dlrs 33 million. Bahmani said before the Islamic Revolution over 47 companies mostly eastern concerns were active in excavation in Iran. However, today Iranian personnel are able to excavation for up to 90 meters of depth. China has garnered solid experiences in this sector for drilling up to 300 meters and COSL has a 40-year history in this respect. An international tender was held with participation from Western companies, but COSL due to reasonable prices and interest of China to cooperate with Iran was selected. Bahmani added that Iran, China cooperation in all areas, notably energy is on the rise. He said that the Chinese company is also ready to provide Iran with additional services in implementing the project, hence the contract value may increase in the future.
The Chinese ambassador to Iran Lio G Tan also present in signing ceremonies said that Iran has taken a major step in excavation in Caspian Sea. Tan added that the contract value is relatively low compared to other bilateral agreements but it is important for Iran to take a step in this area. Although oil production in China is much lower than in Iran, but its 170 million tons of oil production ranks fifth in the world. China with high economic growth needs higher energy resources. **China has imported over five billion of crude oil from Iran last year. ** He said that both Iran and China are faced with bias from major powers and should accelerate their development. **The Chinese Ambassador said the trade between Iran and China exceeds dlrs 10 billion and China is to become Iran’s primary trade partner in the near future. ** He said the Chinese embassy will do its part and be a bridge between the two sides to resolve their issues and improve bilateral trade. He highlighted the importance of mutual cooperation in the energy, power, metallurgy, telecommunications, shipbuilding, transportation and water sectors. Lio said abundant natural resources, big market, geographical location and educated workforce are among relative advantages of Iran, stressing expansion of mutual cooperation.
Re: China bids to revive mega $100 billion Iran energy deal
In foreign affairs, nobody gives a damn about any other country.
True, China AND Russia are making sure they get energy and business from Iran. Too bad for Uncle Sam and its illegitimate child in Middle East.
Re: China bids to revive mega $100 billion Iran energy deal
Big deal, you cream your pants every time the breeze blows…
Frankly, Russia and China are complete whores when it comes to business. They will do business with the filthiest of hands.
While Muslims were frothing at the mouth that the US military had a base in Uzbekistan, guess who was in to the gills with the butcher of Tashkent?
"China has become one of Uzbekistan’s main trading partners in recent years and the rapid expansion of the Chinese economy is having a big impact throughout central Asia.
President Hu clinked a champagne toast with Mr Karimov as the two celebrated their friendship in the presidential palace in Tashkent.
It was, they said, a visit of great importance.
“Our partnership is stronger every year,” said Mr Karimov, “and we’re looking forward to a bright future.”
The main accord is on the development of Uzbek oil and gas. No details were released, but the Uzbeks were hoping for a broad-ranging deal covering both prospecting and extraction from their undeveloped energy sector.
That is in line with China’s broader strategy in central Asia.
In Kazakhstan, too, there is talk of a huge pipeline that will stretch all the way to Xinjiang in western China, where the Chinese need new sources of energy to expand industry in their poorest region.
On the streets in central Asia, you can see the impact of the new China, with almost every consumer good now imported from China.
At the palace there was a nod too to China’s and Uzbekistan’s security concerns. Some of the Muslim, Turkish speaking Uighur people of Xinjiang are deeply hostile to Beijing, while some underground Uzbek groups feel the same way about Mr Karimov’s administration. " http://news.bbc.co.uk/2/hi/asia-pacific/3806217.stm
Re: China bids to revive mega $100 billion Iran energy deal
[quote]
Frankly, Russia and China are complete whores when it comes to business.
[/quote]
Somebody is twisting the pants here.
But irrespective of Russians/Chinese being whores, they are not going to support the terrorist aspirations of American/Zionist pimps.
