Iran, China finalise major oil contract

Discussion in 'Economics' started by hrokling, Dec 9, 2007.


    AFP - Sunday, December 9 04:51 pm

    TEHRAN (AFP) - Iran and Chinese firm Sinopec on Sunday signed a long-awaited final contract for the multi-billion-dollar development of the Yadavaran oilfield in southwestern Iran.

    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, an AFP correspondent present at the ceremony said.

    Iran and Sinopec in late 2004 inked the initial agreement to develop Yadavaran, which is estimated to hold 3.2 billion barrels of recoverable crude.

    But the Iran-China talks had been long held up by disagreements on the terms of the Yadavaran deal, most notably involving the rate of return proposed by Sinopec.

    Oil Minister Gholam Hossein Nozari said earlier this year that Iran sought a lower rate of return in the investment to be made by China, which had asked for 15 percent.

    The two sides have yet to outline the final financial details of the contract.

    The signing of the contract comes as the United States has been pressuring European and Asian countries to cut their business ties with Iran as another lever to exert pressure on the Islamic republic in the nuclear crisis.

    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.

    He said that Sinopec would be the sole main partner and investor in the field.

    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 because of its nuclear programme.
  2. Unintended Consequences...

    American businesses GAVE AWAY TO ASIA significant portions of our well-paying, middle class jobs so that we consumers can continue to buy cheap goods at Box-Mart.

    Asia is rapidly developing their own middle class now (you know, the jobs we gave them?). They want what we've always had... big TV's, appliances, air conditioning, cars, etc.

    All of which increases the demand for oil and drives up the price... for US citizens, too.
  3. They were going to get them anyway ... but the "market based democracies" took care of handing it over to them in a silver platter .... chickens are coming home to roost :)

    In any case, this is the final lapse of long time negotiations which put at stress the already embattled neocon stuff ... lets see china screewing over the us in the next decades, shall we

    With the event of interest rate cuts for the next year or maybe two, clashing with china might cause that naughty little thing called inflation, hence more dollar drops.

    Similar deals have been going on with venezuela for a long time, so the probability of this getting systemic is quite considerable. oil on basket and dollar on carry in a decade?
  4. tyler19


  5. They should just start doing transactions in eurodollars.

  6. Bob111


    you don't have go that far into future...
    the cars and technologies been around for while, but look like US just refuse to use them for some reason..adding bs ethanol into a gas is way better and efficient..

    almost as good as bs hybrid prius or maybe even better in 0-60

  7. nealvan


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    I think ethanol is not a good idea. One they make it from another major resource and 2 it produces undesirable effects that may also cause health problems. I saw another technology that burns magnesium or zinc as fuel very similar to how hydrogen cells work but much safer. Burn salt for fuel though takes the cake for alternative fuels but the sun has the most free energy to harness.
  8. nealvan


    Free energy will take us into the space age. Right now we just have dead end technology and the look of being in the space age.
  9. The strentgh of the US dollar is directly effected by demand for Oil which is paid for in US dollars.

    The US are now in a situation where if:

    A) Countries stop purchasing Oil in dollars


    B) Demand for oil falls dramatically

    Then the US dollar will collapse.

    This is why US government will never support renewable energy in any significant way.

    And why they need to invade countries who stop purchasing oil in dollars. i.e iraq.

    The nuke issue in Iran is just a cover. When the US invade Iran and remove the govenment, they will ensure that all Iran's oil purchases are restored to US dollar transactions.

    #10     Dec 10, 2007