China approaches Iran with $3B oil deal amid sanctions

Thursday, 17. January 2019 19:26

Chinese energy giant China Petroleum & Chemical Corp. offered Iranian governmentally-owned company National Iranian Oil Co. an oil-field deal worth $3 billion, the Wall Street Journal reported on Thursday, citing people familiar with the matter. According to the report, Chinese firm wants a share in the Iranian oil field under the United States waiver, asking Tehran to be able to bring its own equipment while also demanding compensation for the testing of the new development.

The sources say that Iran has refused the offer so far due to the unfavorable terms, despite the difficulties the country is facing amid to the US sanctions. It was also reported that several European nations have halted their oil purchases from Tehran.

China has been granted a waiver allowing the nation to purchase 360,000 barrels of oil from Iran. However, if the new $3 billion deal is agreed, Iranian oil field would also double its production of oil to 180,000 barrels per day within half a year, according to the sources.

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