A simultaneous report in The Daily Star newspaper, however, indicates the deal is worth US$70 billion and China’s Sinopec Group will buy 250 million tons of LNG for 30 years.
Both reports indicated China will be given the right to exploit the massive Yadavaran oil field and Iran will export 150,000 bopd of crude to China for 25 years once the field is commission.
According to ISNA, citing Iranian deputy oil minister Hadi Nejad-Hosseinian, “The deal could eventually reach 15 to 20 million tons a year, taking the total value to as much as US$200 billion. Delivery [cannot] begin for at least five years, as Iran must first build the plants to liquefy the natural gas.”
“The memorandum of understanding also grants to Chinese oil giant Sinopec the right to exploit the Yadavaran oil field on a buy-back basis in co-operation with a major international oil company,” added the official.
It is believed development of Yadavaran is expected to take four years and the field will have a daily production capacity of 300,000 barrels.