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China, Iran close to finalize energy contracts
(AFP)
Updated: 2006-02-17 18:55

China will soon send its top economic planner to Iran in hopes of finalizing energy contracts worth more than 100 billion dollars.


Iran's oil refinery in the Gulf port of Bandar-Abbas. China will soon send its top economic planner to Iran in hopes of finalizing energy contracts worth more than 100 billion dollars.[AFP]

National Developmental Reform Commission chief Ma Kai will lead a delegation to Tehran as early as March to sign agreements for massive exports from the Yadavaran oil fields, finance magazine Caijing said on its website.

His trip will be a follow-up to a memorandum of understanding signed in October 2004 between Iran and Sinopec, China's largest refiner, to buy 250 million tons of liquefied natural gas (LNG) over 25 years. That arrangement could be worth more than 100 billion dollars.

Friday's Asian Wall Street Journal, citing Iranian oil ministry officials familiar with the China talks, said Iran was trying to conclude any deals before potential sanctions are imposed over its nuclear ambitions.

Iran has restarted small-scale enrichment of uranium despite international efforts to stop it. The UN Security Council is expected to debate the issue in March.

The gas deal with China also calls for Sinopec to develop the Yadavaran oil fields, where it could tap into billions of dollars of the estimated three billion barrels of recoverable reserves there, Caijing said.
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