China's Growing Participation in Iranian Oil and Gas Sectors
Dec. 16, 09 (Hamsayeh.Net) - China with its multi trillion foreign exchange reserves has established wide- ranging relationships with oil rich countries to secure its energy needs. Cooperation with Iran in this regard is of great importance to China.
According to the news agency of Iranian oil ministry, China’s investment in the upstream and downstream sectors of Iran’s petroleum industry has touched $ 50 Bln, some 35-40% of which has taken shape in the form of contracts.
China, as the world’s second largest consumer of energy, needs about 8 million bpd of crude oil, some 5.3 million bpd of which is produced locally and the rest is imported. China imports 62% of its crude oil requirements from OPEC member countries, 11% of which (about 484,000 bpd) is imported from Iran.
At present, Naftiran Intertrade Company (NICO) is in charge of securing 90% of financial needs of development of Iran’s Azadegan oilfield and the Japanese Inpex has to provide for the remaining 10%.
In line with a Memorandum of Understanding (MoU) signed with NIOC, China National Petroleum Corporation (CNPC) will buy 70% of shares of NICO in Azadegan and finance the remaining 20% as well.
The volume of oil-in-place of the field is estimated at around 33 Bln barrels, of which 2 Bln barrels (6%) are recoverable.
The early production of the field is underway by National Iranian South Oil Company (NISOC) and the field is currently producing less than 20,000 bpd of blend of heavy and light crude oil (API 19-30).
Source: Eghtesad and Energy
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