The National Iranian Oil Company has prepared a long-term plan to attract foreign and domestic investments worth $145 billion over the next four years.
Oil Minister Javad Owji made the statement while vising the head of China Petroleum and Chemical Corporation (Sinopec) office, Zhong Gouydoung, in Tehran on Tuesday, the Oil Ministry’s news portal Shana reported.
“The investment will be primarily used for developing shared oil and gas fields,” he added, noting that NIOC is willing to resume cooperation with Chinese oil giants, including Sinopec and China National Petroleum Corporation, as they are distinctly familiar with Iran’s hydrocarbon reserves.
Sinopec has already participated in the development of Iran’s Yadavaran Oilfield in Khuzestan Province near the Iraqi border. It also signed a deal worth $1 billion to develop Abadan Oil Refinery, Iran's oldest crude processing facility in the southern oil-rich Khuzestan Province.
Oil experts believe that the economy will struggle if the oil industry, the engine of economic growth, does not get the long-awaited impetus after years of underinvestment.
Owji cautioned that collaboration with multinational firms should not be translated as relying on foreign expertise and workforce because domestic manufacturers and contractors will get the lion's share of work in the new energy projects.
"The oil industry is gearing up for a big leap forward," the minister said, adding that local contractors' capacity "is incomparable with the past", which will help them play a key role alongside multinationals in oil and gas projects.
Unilateral Sanctions
China has always opposed unilateral US sanctions against oil producers and continues to buy crude, especially from Iran.
Iran’s oil sales to China remain its key remaining revenue stream.
In the past three years, China has been Iran’s top crude oil customer despite American sanctions on Iranian oil exports that were imposed on Iran in 2018 after the US withdrew from the nuclear deal Iran had signed with world powers in 2015.
CNPC has already participated in the development of Iran’s North Azadegan Oilfield, the first phase of which became operational in 2016.
China was also Iran’s biggest trade partner in the last Iranian year (March 2020-21), as the East Asian country was responsible for almost a fourth of imports and exports registered by Iranian customs offices.
Top economic officials in Iran said in April that the country is capable of increasing the value of its exports to China to $27 billion in the next few years.
Economic authorities and trade experts maintained that Tehran and Beijing have agreed to exponentially increase trade relations after signing a 25-year document to nearly $27 billion from the previous $9 billion.
In March, China and Iran officially stated they would boost their energy and political cooperation as part of the 25-year strategic partnership agreement.
Iran and China signed the deal to expand relations in the fields of energy, infrastructure, industry and technology.
The two countries also pledged to boost cooperation in fossil fuels and alternative energy and security of fuel supply.
As per the deal, the Chinese side will consider financing and investing in upstream and downstream projects of Iran’s energy industries and the Iranian side shall provide the necessary facilities and support in this respect.
