Economics
China Gets Another Shot at Mideast Energy After Total Leaves Iran
- Middle East accounts for more than 40% of China’s oil imports
- China National Petroleum is partner in Iran South Pars project
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Total SA’s withdrawal from Iran’s giant South Pars gas field has given China another chance to secure a stake in the world’s most coveted energy assets: abundant and low-cost Middle Eastern oil and gas.
Chinese companies have invested in Iraq, the United Arab Emirates and Iran in recent years, and have expressed interest in oil and gas projects in Saudi Arabia and Qatar. The resumption of sanctions by the U.S. on Iran has presented new opportunities, starting with the option to take control of South Pars after Total failed to secure an exemption from the U.S. penalties. Chinese companies are also interested in a $1.5 billion refinery upgrade in Iran.