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China Concludes $4.7 billion Oil Deal with Iran

The International Herald Leader under Xinhua reported an Iranian government release that China National Petroleum Corp. (CNPC) and Iran had signed a $4.7 billion dollar contract on June 3 for the upstream development of phase 11 of the South Pars natural gas field. “The aim in implementing the project will be to produce 50 million cubic meters a day of natural gas and other products.” The implementation will begin in three months. Xinhua states that the agreement with CNPC was in response to the French oil company Total’s delays in finalizing negotiations. “Deputy Oil Minister for Production Affairs Seyfollah Jashnsaz expressed that the concluding the agreement fully demonstrates that the sanctions the West has imposed on the Iranian oil and gas industry has failed and has no effect.”

Source: Xinhua, June 8, 2009;
See also Islamic Republic News Agency at