Sinopec Set To Sign $100 Bn Deal.
Iran has invited the managing director of China Petrochemical (Sinopec) to Tehran to sign an energy deal worth $100 billion, advancing an agreement first reached in 2004. The contract, for Sinopec to develop the Yadavaran oilfield and secure oil and gas supplies over a 25-year period, is complete and ready to be signed. NIOC President Nozari on Nov. 24 said: "All elements of the contract have been finalised and it is in the final process for signing by Sinopec".Under the initial deal signed by Sinopec, China would pay Iran as much as $100 billion over 25 years for the oil and LNG purchases and for a 51% stake in the buy-back contract for Yadavaran, a giant in Khuzistan Province and near the border with Iraq. The deal would allow China to buy 150,000 b/d of Iranian crude oil at market rates for 25 years as well as 250 million tons of LNG.
Royal Dutch Shell, which has worked as a technical consultant for Sinopec on the Yadavaran oilfield, will participate in the field's development. Shell officials have said their company is seeking a 20% stake in the buy-back contract.
Sinopec signed a contract worth 2.17 bn ($2.84 bn), with Iran in July to expand the capacity of the refinery in Arak. Iran is negotiating with several other Chinese companies to develop its energy sector. Tehran is holding talks with China National Offshore Oil Corp. (CNOOC), the biggest Chinese offshore oil producer, about developing the North Pars gas field in the Persian Gulf. In exchange for developing the field, CNOOC may be able to sell LNG from two of the field's four phases over a 25-year period.
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| Publication: | APS Review Oil Market Trends |
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| Date: | Nov 27, 2006 |
| Words: | 281 |
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