World Needs Iran Despite Phony Sanctions

A03990247.jpgTEHRAN (FNA)- The UN Security Council has imposed a third round of sanctions on Iran over its nuclear progress but China and many more countries said on Tuesday the step would not affect their trade with the Islamic Republic.

Asian and other firms have continued to sign energy deals with Iran, the world’s fourth largest oil producer which also sits on the world’s second biggest reserves of gas. Analysts say only some Western firms are wary of investing.

Here are some details of some recent energy deals with Iran:


— Sinopec , China’s top oil refiner, signed a deal in December to invest $2 billion in Iran’s big Yadavaran oilfield. It has also agreed to triple its imports of Iranian crude to 160,000 barrels per day (bpd) in 2008.

— China National Offshore Oil Corp (CNOOC) will sign a deal to develop Iran’s northern Pars gas field in the “near future”, an Iranian official said in February. The deal, announced in 2006, has been valued at $16 billion.

— Iran was China’s third-biggest source of imported crude in 2007, behind Angola and Saudi Arabia, with shipments reaching 20.5 million metric tons, 22.4 percent up on volumes in 2006.


— Malaysian firm SKS Development signed a gas development contract with Iran in December. The overall project would involve developing Golshan and Ferdows gas fields and building a liquefied natural gas (LNG) plant.


— India’s Oil and Natural Gas Corp finalized a financial proposal in March for developing the Farsi oil and gas field in the Persian Gulf. The block is already operated by ONGC Videsh, the overseas arm of ONGC, along with India’s top refiner Indian Oil Corp. Ltd. and smaller explorer Oil India Ltd and it was not clear if the March deal meant additional acreage.


— Gazprom, the world’s top gas producer, said in February it had agreed to develop more phases of Iran’s giant South Pars gas field and enter the country’s oil sector. It has already invested in phases 2-3 of South Pars — worth an estimated $2 billion — together with French and Malaysian firms.


— Polish gas monopoly PGNiG said in February it had signed a preliminary deal with the Iranian Offshore Oil Company last month to cooperate on managing already-discovered gas reserves.


— State-owned Turkish Petroleum Company (TPAO) said in February it was considering working with partners to develop Iran’s South Pars gas field. Turkey already imports gas from Iran via pipeline.


— Italian power utility Edison and Iran’s state-owned National Iranian Oil Company (NIOC) signed a $107 million contract in January to help develop the Dayyer offshore block in the Persian Gulf.

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