Xinhua recently reported that Iran’s Oil Ministry announced, at the end of 2012, that PetroChina “lacked the willingness” to push forward on the investments in some of its projects in Iran. The two sides have been in negotiations for over half a year and PetroChina is not moving forward. Last summer there had already been reports on PetroChina withdrawing from its investment plans. However, PetroChina officially denied any withdrawal. This new Iranian announcement is the latest development under the “shadow of U.S. sanctions.” PetroChina has recently been pulling workers out of some sea-side Iranian cities. PetroChina officials were not available to comment on the latest Iranian government announcement. After the U.S. sanctions started, all Western companies left Iran, which made the Chinese companies the primary investors in Iran’s energy industry. Restrictions and policy constraints present other barriers to PetroChina’s project schedules. PetroChina currently has four investment projects in Iran totaling over US$10 billion.
Source: Xinhua, January 5, 2013