• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 4 hours New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 43 mins Permafrost Melting Will Cost Us $70 Trillion
  • 41 mins Russia To Start Deliveries Of S-400 To Turkey In July
  • 24 mins Occidental Offers To Buy Anadarko In $57 Billion Deal, Topping Chevron
  • 6 hours Nothing Better than Li-Ion on the Horizon
  • 3 hours UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 32 mins Facebook Analysts Expect Earnings Will Reinforce Rebound
  • 17 hours Countries with the most oil and where they're selling it
  • 5 hours $80 Billion to protect Saudi/OPEC paid by US TAXPAYERS.
  • 18 hours Section 232 Uranium
  • 6 hours How many drilling sites are left in the Permian?
  • 21 hours China To Promote Using Wind Energy To Power Heating

Breaking News:

Ford Invests $500M In Tesla Rival

New Electric Vehicles Contain Much More Lithium

New Electric Vehicles Contain Much More Lithium

Lithium carbonate equivalent deployed worldwide…

Sinopec Ready To Pour $3 Billion In Iran Oil

oil rigs

China’s largest crude oil refiner, Sinopec, has offered US$3 billion to Iran’s state oil company, NIOC, to jointly expand the development of a major field in Iran, the Wall Street Journal reports, citing sources in the know.

The sources, who wished to remain unnamed, said the Chinese company considered the offer safe from the sanctions the United States reimposed on Iran last November because the initial deal for the development of the Yadavaran field was inked back in 2007.

The offer, according to the Wall Street Journal, was made last month but it is only now coming to light as media and analysts speculate whether Washington will extend the sanction waivers granted to eight Iranian oil importers will be extended beyond the original deadline.

Three of the eight countries, meanwhile, have completely stopped buying Iranian oil: Taiwan, Italy, and Greece. However, these are not the biggest buyers of Iranian crude and some analysts believe the other five—China, India, South Korea, Japan, and Turkey—may be granted waiver extensions that are, however, bound to come at a cost.

Sinopec, along with the other Chinese state oil giant, CNPC, have already invested heavily in Iran’s oil industry as domestic production declines due to field depletion and the country’s growing oil hunger needs to be satisfied with imported crude.

Yadavaran, as well as another field along Iran’s border with Iraq, are among the largest projects. Yadavaran holds an estimated 31 billion barrels of crude, which makes it one of the largest undeveloped fields in the world, and North Azadegan contains estimated reserves of 5.7 billion barrels.

Sinopec has already invested US$2 billion in the development of Yadavaran, with production there standing at 115,000 bpd, while North Azadegan, operated by NIOC and CNPC, started production at a rate of 75,000 bpd two years ago.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on January 19 2019 said:
    China doesn’t recognize US sanctions on Iran and therefore Sinopec could go ahead and invest in Iran’s oil production.

    The Trump administration is aware that China will go ahead with its investments in oil projects in Iran and will also continue to buy Iranian crude with or without waivers. Moreover, the Trump administration can’t stop China dealing with Iran even if it tried.

    The United States has no alternative but to renew the sanction waivers it granted to eight countries in November last year when they expire in May this year or issue new ones.

    There are two important reasons for that. The first is for the Trump administration to use them as a fig leaf to mask the fact that their zero exports option is out of reach and that the sanctions have so far failed to cost Iran the loss of even one single barrel of oil.

    The second reason is that the United States risks exposing its weakness and helplessness in enforcing the sanctions were it not to renew the waivers in May or fail to issue new ones. The eight countries who received waivers in November with the exception of South Korea and Japan will not stop buying Iranian crude if the waivers were not renewed and the US has no power to force them to stop.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

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