Energy News  





. Iran, China finalise two billion dollar oil contract

by Staff Writers
Tehran (AFP) Dec 9, 2007
Iran and China's Sinopec on Sunday signed a two billion dollar contract to develop a major Iranian oil field, a crucial deal for the Iranian energy industry at a time of mounting international pressure.

The Iranian oil ministry and Sinopec inked the deal to pump oil from the Yadavaran onshore field in southwestern Iran, which was first agreed back in late 2004, at a ceremony in Tehran, an AFP correspondent reported.

"The initial estimation of cost of the project is about 2.0 billion dollars and the final cost of the project will be decided after the offering of the tenders," said Iranian Oil Minister Gholam Hossein Nozari.

The field will be producing 185,000 barrels of oil a day within the next seven years, he added.

The signing came at a time when the United States has been pressuring European and Asian firms, including oil majors, to cut their business ties with Iran to exert pressure on the Islamic republic in the nuclear crisis.

"The signing shows that there is no lack of investment in Iran and we are solidifying our economic relations with China more," said Nozari.

"The second message is that if other countries are willing to invest in the big oil and gas fields of Iran they should not lose the opportunity," he added, in an apparent warning to any dithering Western firms.

The deal is one of the biggest foreign energy contracts ever signed by Iran, which holds the world's second-largest oil and gas reserves and is seeking development of its oil fields.

The contract was signed in Tehran by Zhou Baixiu, the head of Sinopec's international arm, and Iranian Deputy Oil Minister for international affairs Hossein Noghrehkar Shirazi.

The talks to finalise the contract had been long held up by disagreements on the terms of the Yadavaran deal, most notably involving the rate of return proposed by Sinopec.

Sinopec had orginally asked for a 15 percent rate of return from its investment but Nozari said this had been finalised at 14.98 percent.

However he added that the period of reimbursement for Sinopec had been decreased from eight years in the initial agreement to four in the final contract.

"The development will be carried out in two phases," added Nozari.

"The first phase to produce 85,000 barrels per day will be carried out in four years and the second phase to produce another 100,000 bpd will be carried out in another 36 months."

"So in total, the field will produce 185,000 barrels a day."

The National Iranian Oil Company's (NIOC) director for exploration Mahmoud Mohades had earlier put the Yadavaran field's reserves at 18.3 billion barrels, estimating recoverable oil at 3.2 billion barrels.

The 2004 initial agreement also envisaged China's purchase of an annual 10 million tons of Iranian liquefied natural gas (LNG) for 25 years, beginning in 2009.

But Zhou indicated that this was not in the final contract and would be discussed at a later date.

"China is willing to buy LNG from Iran and we hope to talk about the LNG project later."

Sinopec is the sole main partner and investor in the field, although it will be employing sub-contractors, more than half of whom must be Iranian.

Iran and China have significant economic ties and Beijing is the second largest importer of Iranian goods after Japan.

China is a veto-wielding permanent member of the UN Security Council and has until now been reluctant to support fully a US-led drive to impose a third set of UN sanctions against Tehran over its nuclear programme.

Community
Email This Article
Comment On This Article

Related Links
Powering The World in the 21st Century at Energy-Daily.com




Tempur-Pedic Mattress Comparison

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News
Analysis: Nabucco's hazy future
Washington (UPI) Dec 7, 2007
Since 1991, a massive veiled struggle has emerged between Russia and Western energy companies, led by the United states, to control Central Asia's vast energy reserves, centered on the waters of the Caspian.

.
Get Our Free Newsletters Via Email
  



  • Analysis: Kazakh oil and Western woes
  • Report: Wind farms to power British homes
  • Iran, China finalise two billion dollar oil contract
  • Market forces essential to halting global warming: Gore

  • Bulgaria hails EU green light for nuclear plant
  • Investors covet Canadian nuclear energy market
  • IAEA chief to visit uranium enriching plant in Brazil
  • Two years to start Japan's giant nuke plant: expert

  • A Breathable Earth
  • Researchers Find Origin Of Breathable Atmosphere Half A Billion Years Ago
  • Study Reveals Lakes A Major Source Of Prehistoric Methane
  • Giant Atmospheric Waves Over Iowa

  • Up to 60 pct of Amazon at risk from climate change: WWF
  • The Lost Forests Of Afghanistan
  • Report Finds Deforestation Offers Very Little Money Compared To Potential Financial Benefits
  • Indonesia's Papua scarred by vanishing forests

  • Reduce Fish Catch Now For Bigger Net Profits Later
  • Did Early Southwestern Indians Ferment Corn And Make Beer
  • Adapting Agriculture To Climate Change
  • World farm output to drop due to global warming: experts

  • Feeling Guilty Over Climate Change Then Call The Solar Taxi
  • Carmakers pledge support for Bali climate talks
  • France slaps penalties on gas-guzzling cars
  • Ford eyes new China car plant: report

  • California urges regulation on aircraft emissions
  • Announcement Of Opportunity For Sounding Rocket And Balloon Flights
  • China to order up to 150 Airbus jets during Sarkozy visit: report
  • Time Magazine Recognizes The X-48B

  • Nuclear Power In Space - Part 2
  • Nuclear Power In Space
  • Outside View: Nuclear future in space
  • Could NASA Get To Pluto Faster? Space Expert Says Yes - By Thinking Nuclear

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement