China.com.cn reports that negotiations between China National Offshore Oil Corp (CNOOC) and Iran’s national gas company are nearing the last stage of reaching an agreement on a US$16 billion natural gas project. This is the second big energy deal between the two countries in the last couple of months. According to the report, CNOOC will provide technical support and take care of factory construction, transportation, and sales for the exploration of the North Pars gas field of Iran. In return, China will be allowed to share half of the liquid gas produced. China will have the right to purchase one billion tons of liquid gas each year. The deal is effective for 25 years. Also reported by International Herald Leader (Xinhua), the United States has been applying pressure on China regarding the negotiations, but China is not afraid of the interference.
Source: China.com.cn, April 18, 2008, and Xinhua, April 22, 2008 http://big5.china.com.cn/economic/txt/2008-04/18/content_14973718.htm http://news.xinhuanet.com/herald/2008-04/22/content_8025512.htm