Wednesday, October 12, 2011

Iran Suspends Contract of China’s Oil and Gas Giant CNPCI

Action Comes after Suspension of Russia’s Energy Giant Gazprom

Iran said it had suspended a contract with Chinese National Petroleum Corporation International (CNPCI) for development of its North Pars gas field.

“We will decide on the continuation of CNPCI activities in the North Pars gas field when they fulfill their commitments in Iran's South Pars gas field, which is Iran's first priority,” said Mousa Souri, the managing director of Pars Oil and Gas Company [Mehr News Agency, 11 October].

On Tuesday, Iran also formally suspended Russia’s Gazprom from developing its Azar oil field.

Western companies have already pulled out from Iran’s energy sector due to the fear of sanctions. But the non-performance of CNPCI, the oil and gas giant owned by the Chinese government, and Gazprom, the Russian oil and gas giant, will have a chilling effect on the future of foreign investment in Iran’s oil and gas sector.

Iran’s Oil Minister Rostam Qasemi said after the suspensions that the Islamic Republic had no need for foreign investment in energy sector. Although there are serious doubts about the credibility of Qasemi’s statement. If Iran did not need such investments, they would not have awarded these huge contracts to the Russians and the Chinese in the first place, only to suspend them later.


Anonymous said...

"If Iran did not need such investments, they would not have awarded these huge contracts to the Russians and the Chinese in the first place, only to suspend them later."

That's a misuse of the word need. You are looking for the word "prefer."

Anonymous said...

Good news
The iran have to develop the fileds by iranian companies and sell only the oil/Gas, After about 100 Year Experience in oil Industrie, you must do it yourself

Anonymous said...

Anon 6:59 AM

Good news if they do and Good news if they don't you sound like a typical Yes Man.

Anonymous said...

I predicted this six months ago and now it has happened. Now wait for the South Korean contract to fall through.
It's sad and unfortunate but as long as this situation remains between Iran and US it can only get worse.
After all no matter what anybody thinks the US pull the global financial strings and even China has to be on good terms with them to sell their cheap goods.

Nader Uskowi said...

Anon 5:48 AM,

Are you arguing that Iran does not need foreign investment? That would certainly make the country very unique in modern history, especially in this global age. If that's what your comments imply, then I am glad that the leadership in Iran is not listening to such advice and indeed are, and have been, actively seeking foreign investments for the country, it's absolutely needed for the country's development. The problem is not that the government does not get the point, they do, the problem is political in nature and the government needs to find a way out of the current impasse.

Anon 6:59 AM,

We can not speak with both sides of our mouth. I remember clearly that when Iran signed these agreement with CNPCI, the pro-government analysts inside and outside Iran hailed them as the triumph of Iran's Ostpolitik, looking to East not the West. By same token, when we are forced to suspend those very contracts, one should also admit that the experiment of entering into strategic alliances with the East has not worked as planned, and the country needs to look at its foreign policy again and try ways to get out of the current impasse.

Anonymous said...

Mr Uskowi

This regime will collapse if they change their foreign policy which is based on anti American and Israeli politics.
They need enemies to justify their existence.

Anonymous said...

Dear All

ofcourse you can look to East or west for new Investor and technologie

but if you engage your own companies, it will be cheaper for you.
in case ol Industry´ do it yourself

The Chinese Companies are not UInvestors, They are contractors.

Anonymous said...

These mullah lovers make me laugh they always try to cover up the decrepit regimes faults.
If they do business with China is good for technology transfer or if contracts are suspended or China pulls out,its good to do it yourself we don't need anyone.

Make your minds up guys or do you just blindly follow your leader to the deepest dark well.

Anonymous said...

everybody is picking on us

we don't need anybody

when the last of our very few friends doesn't do what we want, it proves that we're right.

every time we lose a friend, we get stronger.

Russia, Turkey and China are all controlled by the Crusaders and Jews

whatever kills us makes us stronger

Steve said...

Nader writes "If Iran did not need such investments, they would not have awarded these huge contracts to the Russians and the Chinese in the first place, only to suspend them later".
This is a faulty conclusion. Iran actually IS capable of developing those gas/oil fields completely on its own, without any foreign assistance. Unfortunately this will bind a lot of funds, which otherwise could be used by Iran on other (equally important) tasks.

Inaction of Russia and China indicates they do not want to have yet another member in the nuclear club. But my guess is that they will strongly prefer a nuclear Iran over the prospect of a ME completely under US control.
In my view, all those strange maneuvres will only delay the inevitable a little bit. And the inevitable is a FULL BLOWN NUCLEAR IRAN.

Anonymous said...

This regime is badly cornered which might lead them to decide to go fully nuclear because they have nothing to loose.
As long as the present ruling class and their henchmen are maintained they might go a little further down the road but in the long term the regime has shoot its last bullet and it's just a matter of time that it will collapse.

Anonymous said...

Steve, you're right.

the Iranian government and the Iranian government's weapons program FULLY BLOWS.

When this iranian regime gets BLOWN AWAY, the world isn't gonna be anywhere near to as hostile to iraniannuclear power.