Friday, August 7, 2015

Iran Wants To Give An Oil Field To China For Arms

A Chinese-made Chengdu J-10 fighter jet is seen on the tarmac during a rehearsal before the opening of the seventh China International Aviation & Aerospace Exhibition. Reuters/Bobby Yip (China)

IBTimes: China And Iran Weigh $1 Billion Deal To Swap Chengdu J-10 Fighter Jets For Major Oil Field

China and Iran are mulling a $1 billion deal that would see China trade 24 Chengdu J-10 fourth-generation fighter jets in exchange for control of Iran’s biggest oil field for two decades, a report in the Taiwanese newspaper Want Daily said Thursday. The oil field in question is the 350 square-mile Azadegan field, which produces around 40,000 barrels of light and heavy crude per day. It’s currently operated by the National Iranian Oil Company and is thought to be the largest oil discovery in the country in 30 years.

The China National Petroleum Corporation had previously signed a $2.5 billion deal in 2009 to produce 75,000 barrels a day at the South Azadegan oil field over a 25-year period. However, work to develop the field for production was canceled in 2014 because strict sanctions imposed by the West against Iran were beginning to affect Chinese financiers of the deal. A similar $2 billion contract signed in 2009 for the North Azadegan field has continued throughout sanctions.

WNU Editor: If this deal happens .... it will be huge. Both Saudi Arabia and Israel have always believed that when economic sanctions are lifted Iran would increase oil production and begin to spend heavily on weapons .... we are now seeing that happen..

1 comment:

Ropestuff said...

What does it say that they are putting this kind of money into planes rather than air defense? We should watch how they spend their money. Where is the trend, offense or defense?