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China Shuns US And Invests Direct In Iran Oil-Fields

Tyler Durden's picture




 

Between Clinton's 'prices to be paid' and Obama's new trade-war, is it any wonder the Chinese have decided to escalate their 'more-than-rhetoric' from bartering away from the USD. After ignoring the sanctions and then receiving their exemption, PressTV reports tonight that China is to invest in developing north and south Iranian oil fields (which will produce 700,000 barrels per day of crude). One of the oil fields, Azadegan, has one of the world’s largest oil deposits, with in-place oil reserves estimated at 42 billion barrels - enough to tide China over a for a while - as Iran's Oil Minister Rostam Qasemi adds after 10-15 years of negotiations the decision has finally (and coincidentally very timely) been reached as "the Chinese side has started its activities by investing USD 20 billion in the oil fields".

 

Via PressTV:

Iran's Oil Minister Rostam Qasemi says China has agreed to invest USD20 billion in developing north and south Azadegan and Yadavaran oil fields which will finally produce 700,000 barrels per day (bpd) of crude oil.

 

Speaking to reporters in a visit to the Petropars Company on Sunday, the oil minister said the agreement for developing Azadegan and Yadavaran oil fields has been reached after 10-15 years of negotiations with the Chinese side.

 

He added that the Chinese side has started its activities by investing USD20 billion dollars in the oil fields.

 

"So far more than 20 drilling rigs have been installed in Azadegan and Yadavaran oil fields and plans have been made for the daily production of 700,000 bpd of crude oil [when development of both fields is complete],” Qasemi stated.

 

The minister said contracts have been signed for the development of 12 new oil fields in the past few months, adding, “Development of some fields, including Azar and Changouleh oil fields has also begun.”

 

Qasemi said necessary measures have been taken for the development of Darkhoein and Mansouri onshore oil fields as well as offshore fields such as Farzad A.

 

Yadavaran oil field is located in the southwestern Khuzestan Province bordering Iraq. The development project of the oil field is expected to be implemented in three phases. Upon the completion of all phases, some 300,000 barrels of oil are expected to be pumped out on a daily basis.

 

Azadegan oil field has one of the world’s largest oil deposits, with in-place oil reserves estimated at 42 billion barrels.

 

Iran holds the world's third-largest proven oil reserves and the second-largest natural gas reserves.

 

The country's total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of extractable oil. Moreover, heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.

 

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Mon, 07/09/2012 - 00:26 | 2597881 Antifaschistische
Antifaschistische's picture

Don't ask like this is a victory for China....the deal is in USD!   Point goes to Wall Street/Washington.

Mon, 07/09/2012 - 00:58 | 2597917 Clint Liquor
Clint Liquor's picture

You do know the object is for China to divest itself of all USD, right?

It's musical dollars. The last one holding USD is fucked.

Mon, 07/09/2012 - 05:27 | 2598081 EmileLargo
EmileLargo's picture

The question is: what price do the Chinese pay for the oil? 10 bucks a barrel? The Chinese are smart. They let Iran be isolated, let the Americans create a situation in which no one buys Iranian oil and it piles up in tankers in the Persian Gulf and then swoop in on the deal when no one will buy the oil. The only other country that could buy the oil is Russia and they won't since they are exporters.

It is a matter of time before the Chinese move into Venezuela full time.

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