Iran and China today signed a two billion dollar oil contract. China’s Sinopec will develop Iran’s vast oil field of Yadavaran.
The contract is considered a victory for Iran’s oil industry which has been under US sanctions. This is the first major international contract Iran has signed since the publication of the new US National Intelligence Estimate on Monday.
The talks to finalize the contract had been long held up by disagreements involving the rate of return on investment for Sinopec. China’s national oil company will now receive a 14.98% ROI.
Yadavaran will be producing 185,000 barrels of oil a day within the next seven years.