Sinopec to explore Iran oil block
(AFP)
Updated: 2006-06-22 14:10
China's Sinopec has signed a multi-million dollar contract with Iran for the
exploration and potential development of an oil block in the Islamic republic,
Iranian official media reported.
Iranian state radio said the deal
to explore the onshore Garmsar block -- one of 16 oil blocks that Iran put out
to tender in 2003 -- was worth between 20 million dollars and 59 million dollars
and covers a four-year period.
The report said that if Garmsar is found to be viable, its development will
be also awarded to Sinopec -- one of China's largest oil groups.
Another report in the Shanghai Securities News said Sinopec, China's largest
refiner which is also becoming increasingly involved in exploration, has also
bid on three other onshore blocks in Iran -- Khorramabad, Kuhdasht and Saveh.
The deal came after Iranian President Mahmoud Ahmadinejad's visit last week
to China for a meeting of the Shanghai Cooperation Organization, a regional
cooperation grouping in which it is an observer.
China and Iran have close economic ties but preliminary gas and oil deals
have yet to bear fruit.
The countries are still in negotiations over a potentially huge energy deal
that was tentatively inked in 2004 and involves Sinopec.
As part of the initial memorandum of understanding, Sinopec would buy 250
million tons of liquefied natural gas over 25 years, which alone could be worth
more than 100 billion dollars.
In January 2001, Sinopec was awarded exploration of Zavareh-Kashan, another
onshore oil block in central Iran.
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