Baku, Azerbaijan, May 15
By Fatih Karimov - Trend:
The recently signed Iran-China long-term oil and gas deal envisages a wide range of cooperation between the two countries from crude oil sale, to investment, Iran's deputy oil minister for international affairs and trading, Amir Hossein Zamaninia said, the oil ministry's SHANA news agency reported.
The MoU was signed by Zamaninia and deputy head of the National Energy Administration of China Zhang Yuqing on a visit to Tehran May 15.
According to Zamaninia, the five-year deal includes the sale of crude oil and gas condensates as well as cooperation in exploration and development, enhancement of Iranian oil fields' recovery rate, manufacturing oil and gas equipments and investment in various oil, gas, refining and petrochemical projects.
He expressed hope that Iran's cooperation with leading Chinese companies will continue in the post-sanctions term within the framework of the newly designed contract, called the Iran Petroleum Contracts (IPCs).
The Chinese companies will purchase 430,000 barrels of crude oil from Iran per day under the deal which was signed today, Zamaninia said.
He added that Chinese firms currently buy over 600,000 b/d of Iran's crude oil.
Speaking following the ceremony to sign the MoU, Yuqing said that Beijing buys 50 percent of Iran's oil exports.
He further said that Chinese companies can well jockey for the Iranian market with their European rivals now that sanctions have been lifted on Tehran.
He said Chinese oil companies are among the top ones in the world and their activities meet the international standards.
Ahead of signing the deal, Zamaninia said Tehran considers China as a reliable partner, voicing the Islamic Republic's willingness to enter into partnership with major Chinese firms for developing oil and gas fields in Iran in a competitive atmosphere.
China is one of Iran's traditional oil customers. The country's oil purchase from Iran has increased by 13 percent following the removal of international sanctions last January.