China ready to replace Total in Iran

[Piotr]

China ready to replace Total in Iran – report
Published time: 11 May, 2018 16:53

Chinese energy giant CNPC is willing to buy French firm Total’s stake in the Iranian South Pars gas project should the latter decide to quit because of US sanctions against Tehran, Reuters reports.
“The possibility of Total’s pullout is quite high now, and in that scenario CNPC will be ready to take it over fully,” the news agency quotes its industry source as saying.

CNPC foresaw a high probability of a re-imposition of US sanctions,” another source said.

The South Pars field is the world’s biggest natural gas reserves ever found in one place. Total has a 50.1 percent stake in the project that develops phase 11 of the South Pars, while China has 30 percent with the remaining shares belonging to Iranian national oil company subsidiary PetroPars.

At the current gas prices, the entire reserves of the South Pars can be estimated at around $2.9 trillion. Iran shares the field with Qatar. Total signed a deal with Iran in July 2017 to develop phase 11 of the gas field with an initial investment of $1 billion. The French company was the first Western firm to invest into Iran’s energy sector after the 2015 nuclear deal.

In March, Total CEO Patrick Pouyanné said the company would seek a waiver to continue the development of the gas field if the US decided to reimpose sanctions.

Source: https://www.rt.com/business/426501-china-south-pars-iran-total/

 

[Path-Finder]

That means the Chinese can be crucial in IP pipeline in the absence of the any western contractors.

 

[Kastor]

Great news...

 

[WordsMatter]

China ready to replace Total in Iran – report
Published time: 11 May, 2018 16:53

Chinese energy giant CNPC is willing to buy French firm Total’s stake in the Iranian South Pars gas project should the latter decide to quit because of US sanctions against Tehran, Reuters reports.
“The possibility of Total’s pullout is quite high now, and in that scenario CNPC will be ready to take it over fully,” the news agency quotes its industry source as saying.

CNPC foresaw a high probability of a re-imposition of US sanctions,” another source said.

The South Pars field is the world’s biggest natural gas reserves ever found in one place. Total has a 50.1 percent stake in the project that develops phase 11 of the South Pars, while China has 30 percent with the remaining shares belonging to Iranian national oil company subsidiary PetroPars.

At the current gas prices, the entire reserves of the South Pars can be estimated at around $2.9 trillion. Iran shares the field with Qatar. Total signed a deal with Iran in July 2017 to develop phase 11 of the gas field with an initial investment of $1 billion. The French company was the first Western firm to invest into Iran’s energy sector after the 2015 nuclear deal.

In March, Total CEO Patrick Pouyanné said the company would seek a waiver to continue the development of the gas field if the US decided to reimpose sanctions.

Source: https://www.rt.com/business/426501-china-south-pars-iran-total/

I wouldn't put too much stock into this news. The company has a big presence in the US and Trump has said the US will punish any company that deals with IRI. Per Bloomberg News:
PetroChina built itself into one of the largest oil traders in North America, hiring top talent with the goal to compete with trading giants Vitol SA [VITOLV.UL], Trafigura and Mercuria Energy Group, industry participants said.

 

[Chinese-Dragon]

I wouldn't put too much stock into this news. The company has a big presence in the US and Trump has said the US will punish any company that deals with IRI. Per Bloomberg News:
PetroChina built itself into one of the largest oil traders in North America, hiring top talent with the goal to compete with trading giants Vitol SA [VITOLV.UL], Trafigura and Mercuria Energy Group, industry participants said.

America has already blacklisted so many Chinese companies from the USA that will all be very eager to jump into the Iranian investment market.

CNPC is already heavily involved in Iran's oil sector.

Does the USA want (1) effective sanctions against Iran, or do they want (2) a trade war against China? They can't have both, and it looks like they have already made their choice, they want a trade war against China. Which means China is going into overtime in making sure that Iran can bypass the sanctions, using Chinese companies which have already been banned by the USA, which are involved in both sensitive military technology as well as oil/gas.

 

[Tokhme khar]

Absolutely correct China Dragon.......this new scenario will bring Russia/ China/ Iran much closer and ultimately coalesce publicly as the troika. Many in the independent media have already stated this time and again. Iran is the key linchpin for China to revive the Silk Road.

P.S. Just yesterday the first Chinese train pulled up in Tehran from inner Mongolia carrying freight. First time ever!

America has already blacklisted so many Chinese companies from the USA that will all be very eager to jump into the Iranian investment market.

CNPC is already heavily involved in Iran's oil sector.

Does the USA want (1) effective sanctions against Iran, or do they want (2) a trade war against China? They can't have both, and it looks like they have already made their choice, they want a trade war against China. Which means China is going into overtime in making sure that Iran can bypass the sanctions, using Chinese companies which have already been banned by the USA, which are involved in both sensitive military technology as well as oil/gas.

 

[WordsMatter]

America has already blacklisted so many Chinese companies from the USA that will all be very eager to jump into the Iranian investment market.

CNPC is already heavily involved in Iran's oil sector.

Does the USA want (1) effective sanctions against Iran, or do they want (2) a trade war against China? They can't have both, and it looks like they have already made their choice, they want a trade war against China. Which means China is going into overtime in making sure that Iran can bypass the sanctions, using Chinese companies which have already been banned by the USA, which are involved in both sensitive military technology as well as oil/gas.

I believe the intent is effective sanctions that would lead to change of IRI's behavior. I doubt very much your multi-national cooperations would be willing to be targets of US sanctions or ire. After all China does more business with the US that it could ever do with IRI. Sure small Chinese companies may trade with IRI at higher than normal margins, but your best brands and corps will not. Nor should they.

 

[Beast]

I believe the intent is effective sanctions that would lead to change of IRI's behavior. I doubt very much your multi-national cooperations would be willing to be targets of US sanctions or ire. After all China does more business with the US that it could ever do with IRI. Sure small Chinese companies may trade with IRI at higher than normal margins, but your best brands and corps will not. Nor should they.

Check out the company Norinco. China states owned companies are immune to US sanction becos we have plenty of cash and financial support from stated. They are basically ordered to follow whatever direction state order.