• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 6 hours One Last Warning For The U.S. Shale Patch
  • 1 day Modular Nuclear Reactors
  • 1 day Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 11 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 2 days Chile Tests Floating Solar Farm
  • 9 hours Climate change's fingerprints are on U.S. Midwest floods
  • 2 hours Dutch Populists Shock the EU with Election Victory
  • 1 day Poll: Will Renewables Save the World?
  • 9 hours Telsa Sales in Europe
  • 28 mins 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 10 hours Read: OPEC THREATENED TO KILL US SHALE
  • 6 hours The Political Debacle: Brexit delayed
  • 2 days US-backed coup in Venezuela not so smooth
U.S. And China Hold Key To Higher Oil Prices

U.S. And China Hold Key To Higher Oil Prices

Crude oil prices continue to…

China’s CNPC Halts Iran Gas Investment Under U.S. Pressure

CNPC drilling rig

State-controlled China National Petroleum Corporation (CNPC) has suspended investment in the giant South Pars gas field in Iran, following pressure from the United States and in an attempt to steer clear of U.S.-China tensions amid the ongoing trade talks, Reuters reported on Tuesday, quoting three Chinese state oil executives.  

“China sees the relationship with the U.S. as paramount over anything else. As a state-owned entity CNPC will stay clear of bringing any unwanted trouble into this relationship as the U.S. China trade talks are under way,” an official familiar with CNPC’s global strategy told Reuters.

CNPC is replacing French oil and gas major Total in Iran’s multi-billion-dollar South Pars gas project, Iran’s Oil Minister Bijan Zanganeh said at the end of November.  

Last year, Total became the first supermajor to return to Iran after the previous sanctions were lifted. But after the U.S. withdrawal from the Iran nuclear deal, Total said in May that it would not be in a position to continue the South Pars 11 gas project and would have to unwind all related operations before November 4, 2018. Before Total quit Iran, the French company had 50.1 percent in the project and was its operator, while CNPC owned 30 percent, and Petropars—a wholly owned subsidiary of the National Iranian Oil Company (NIOC)—held the remaining 19.9 percent.

A suspension of the CNPC investment would be a blow to Iran, which has hoped to continue the South Pars 11 project with Chinese participation instead of French investment.

According to two of Reuters’ sources, although CNPC has agreed to suspend the South Pars investment, it has managed to convince U.S. officials—with whom the Chinese company held four rounds of talks in recent months—that CNPC should continue to invest in the oil fields North Azadegan and Masjid-i-Suleiman (MIS) to recover billions of dollars spent under contracts signed years ago.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Andrew Nichols on December 12 2018 said:
    Another small step towrds WW3.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News