Two key questions logically arise from last week’s announcement from Iran’s Petroleum Ministry that it has awarded a US$1.3 billion development deal to more than double oil production at the supergiant South Azadegan oilfield, the second such oil project signed this month, the other being a US$300 million development contract for Yaran. The first question is, given the fact that Iran is technically bankrupt, how can it afford such projects? The second is, given the swingeing U.S. sanctions still in place – including against the main tanker fleets of the National Iranian Tanker Company and the Islamic Republic of Iran Shipping Line – where is any of this increased oil supply meant to go? The answer to both questions is the same – China – and precisely what is going on is analysed below....This has also implications for the US, Israel, and India. The US and Israel, since China now has a stake in defending Iran. India, because it had a deal with Iran it did not deliver on owing to sanctions and now has lost out to China owing to non-performance on the contract.
Oliprice
China Signs Series Of Deals To Develop Supergiant Oilfield In Iran
Simon Watkins
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