!! History Commons Alert, Exciting News

Profile: Sinopec

Sinopec was a participant or observer in the following events:

China and Iran negotiate a $70-$100 billion deal that gives China’s state oil company a 51 percent stake in Iran’s Yadavaran oil field, located near the Iraq border. The Yadavaran oil field, once thought to be two separate oil fields (Koushk and Hosseinieh), contains more than 3 billion barrels of recoverable oil and a total reserve of 17 billion barrels. [China Daily, 11/8/2004; Washington Post, 11/17/2004] China agrees to purchase ten million tons of liquefied natural gas (LNG) annually for a 25-year period once Iran has constructed plants to liquefy the natural gas, a feat that could take more than five years. The amount could increase to as much as $200 billion if an oil deal, currently under negotiation, is also agreed upon by the two nations. [Persian Journal, 10/31/2004] As part of the deal, Sinopec, China’s state oil company, will have the right to exploit Iran’s Yadavaran oil field, located near the Iraq border, on a buy-back basis in cooperation with another major international oil company. The Yadavaran oil field contains more than 3 billion barrels of exploitable reserves and comprises the Koushk and Hosseinieh oil fields, “which were recently found to be connected at various layers, forming an oil field with a cumulative in-place reserve of 17 billion barrels,” the Chinese Daily reports. [China Daily, 11/8/2004] Iran is estimated to have a 26.6-trillion-cubic-meter gas reservoir, the second-largest in the world. About half of its reserves are located offshore. Some observers suggest that the Iran-China agreement could establish a precedent that opens the way for other nations to do business with Iran. The US Iran-Libya Sanctions Act of 1996 (ILSA), which penalizes foreign companies for investing more than $20 million in Iran’s oil and gas industry, has so far discouraged many companies from doing a large amount of business with the Islamic state. [Asia Times, 11/6/2005] Additionally, the Iran-China deal dramatically reduces the Bush administration’s leverage over Iran, as its threat to bring Iran to the UN Security Council over its nuclear program is greatly weakened by the fact that China, as a permanent member, holds a veto at the council. [Washington Post, 11/17/2004]

Entity Tags: Sinopec

Timeline Tags: US confrontation with Iran

India announces that it has agreed to a $40 billion deal with Iran. Under the terms of the agreement, the National Iranian Oil Company (NIOC) will sell 5 million tons of liquefied natural gas (LNG) annually to India over a 25-year period with the possibility of increasing the quantity to 7.5 million tons. India’s price will be computed at 0.065 of Brent crude average plus $1.2 with an upper ceiling of $31 per barrel. As part of the deal, India’s ONGC Videsh Ltd (OVL) will participate in the development of Yadavaran, Iran’s largest oil field. India’s share in the oil field will be 20 percent, which translates into roughly 60,000 barrels per day of oil. Iran has retained a 30 percent stake while the Chinese state oil company Sinopec secured a 50 percent share in an agreement signed at the end of October (see October 29, 2004). India’s deal with Iran will also provide India with 100 percent of the rights in the 300,000-barrel-per-day Jufeir oilfield. [Asia Times, 1/11/2005; World Peace Herald, 1/17/2005] The agreement could give new impetus to the long proposed Iran-Pakistan-India gas pipeline project (see 1993). The Tehran Times, which is known to represent the views of the Iranian government, comments, “The Iran-India agreement on LNG exports will pave the way for the implementation of the project to pipe Iranian gas to India via Pakistan and the dream of the peace pipeline could become a reality in the near future.” [Asia Times, 1/11/2005]

Entity Tags: National Iranian Oil Company, Sinopec, ONGC Videsh

Timeline Tags: US confrontation with Iran

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike