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Iran, China finalize $2 bil oil deal

Discussion in 'Political Zone' started by Maikeru-sama, Dec 12, 2007.

  1. Maikeru-sama

    Maikeru-sama Mick Green 58

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    Iran, China finalize $2 bil oil deal
    Monday, December 10, 2007 at 07:17 EST

    TEHRAN — Iran and China's Sinopec on Sunday signed a $2 billion 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.

    "The initial estimation of cost of the project is about $2 billion 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 finalize 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 originally asked for a 15% rate of return from its investment but Nozari said this had been finalized at 14.98%.

    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.

  2. Maikeru-sama

    Maikeru-sama Mick Green 58

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    I have long said that this is why Iran is very dangerous.

    Russia and China are very anxious to provide the Capital and Technology to develop Iran's oil fields.

    China and Russia are permanant members of the U.N. and will block any move against Iran.

    It really is too bad that the Japanense don't seem to want to at least look at modifying their pacifist constitution to be a counter to China in that Regiion. That went out of the window with Shinzo Abe's resignation.
  3. theogt

    theogt Surrealist Zone Supporter

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    I don't get the big fuss over Iran. They're not going to do jack. Everyone was scared about Pakistan and India during the 90s. Now what? Nothing.

    Mutually assured destruction makes even the crazies take heed.
  4. zrinkill

    zrinkill Diamond surrounded by trash

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    I will say it again ..... if Israel thinks that Iran is building Nuclear Weapons ..... they will airstrike them ....... and will not ask anyone for permission.
  5. windward

    windward NFL Historian

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    Thank you. For a while there, I thought I was the only one who thought so.
  6. Maikeru-sama

    Maikeru-sama Mick Green 58

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    Let me restate my position.

    I am totally against a Pre-emptive strike on Iran and I think it is extremely foolish and arrogant to do so.

    What I don't understand is why the Administration will not engage Iran politcially via diplomatic means?

    The Mullahs and Ahmadinejad are very unpopular in Iran, especially among the young people.

    Everytime the current administration talks about a strike and sanctions, it just polarizes the entire country of Iran and they side with the current leadership in Iran.

    I believe Iran should be engaged because I think they have enough power and the will to destablize things in that region even further. Also, I don't like the idea of the US targeting a country through sanctions or military action and Russia and China are on the other side of that and have very real interested in that country.

    However, alot of you guys are servicemen/women, so I would naturally defer to you on some of these matters ;) .
  7. windward

    windward NFL Historian

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    Oh, absolutely. I don't think Iran ought to be ignored at all. The first step is to renew diplomatic ties with Iran, not by straining a military force already in Iraq and Afghanistan.

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