The Latest from Iran (9 July): Desperately Seeking All-Is-Well Oil News

0500 GMT: More than a week after European Union oil sanctions came into effect, after confirmation that Japan and South Korea have halted imports of Tehran's crude for July, after problems with exports to China because of a dispute over freight charges, and after further pull-outs of foreign investment, Iranian officials are seeking a bit of good news in response. 

There was the claim over the weekend that Iran could make arrangements with a private consortium to keep some oil moving to Europe. There was the assertion that Iran can replace European insurance to cover its tankers. And then Minister of Oil Rustam Qassemi stepped up on Sunday: 

China has agreed to invest USD20 billion in developing north and south Azadegan and Yadavaran oil fields which will finally produce 700,000 barrels per day (bpd) of crude oil.

Speaking to reporters in a visit to the Petropars Company on Sunday, the oil minister said the agreement for developing Azadegan and Yadavaran oil fields has been reached after 10-15 years of negotiations with the Chinese side. He added that the Chinese side has started its activities by investing USD20 billion dollars in the oil fields.

“So far more than 20 drilling rigs have been installed in Azadegan and Yadavaran oil fields and plans have been made for the daily production of 700,000 bpd of crude oil [when development of both fields is complete],” Qasemi stated. 

The minister said contracts have been signed for the development of 12 new oil fields in the past few months, adding, “Development of some fields, including Azar and Changouleh oil fields has also begun.” 

There was no confirmation of the news from Chinese sources.

Meanwhile, Italy's Edison has become the sixth international company to withdraw from investment in Iran in the last two years, following Royal Dutch Shell, Japan's Inpex, Norway's Statoil, France's Total, and Italy's Eni. Tehran has also threatened to cancel contracts with Chinese firms who have not proceeded with work.

from EA WorldView: EA Iran

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