Energy cooperation between China and Iran is one of the major purposes of Chinese President Xi Jinping’s visit to the Islamic Republic.
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China is the largest trade partner of Iran and also the largest importer of its crude oil. Especially after Western countries imposed sanctions on Iran in 2012 for its nuclear program. Sanctions that were relaxed last week.
According to China’s Commerce Department, during the first 11 months of last year, China imported 24.36 million tons of crude oil from Iran, accounting for 8 percent of the total amount of oil imports in the world.
China’s petroleum companies have also been increasing investment in oil projects overseas.
The North Azadegan Oilfield Project, located in the west of Ahvaz near the Iran-Iraq border, is one example of the cooperation projects led by the China National Petroleum Corporation, or CNPC.
There are 480 CNPC staff members working at the oilfield in a facility that now produces 75,000 barrels of crude oil a day.
“The project is a good example of Sino-Iranian energy cooperation, and Xi’s visit will surely enhance the bilateral ties, especially in the field of energy, and Iran has a big potential in energy,” said Mostafa, a technical director specialized in drilling.
With the recent removal of sanctions, it means Iran is once again open to the world for business, which makes the market more competitive as many global companies are already moving to resume trade and connection with Iran.
For the Chinese oil giant, however, that means competition and challenges, but also chances of exchange and cooperation with other investors who have better technologies.
It could turn into a powerful opportunity that benefits all parties.
Story by CCTV NEWS