Posted on 10/06/2019 7:44:45 PM PDT by DeathBeforeDishonor1
China National Petroleum Corp has pulled out of a deal to develop Iran’s South Pars field. Photo: APChina National Petroleum Corp has pulled out of a deal to develop Iran’s South Pars field.
China National Petroleum Corp has pulled out of a deal to develop Iran’s South Pars field. Photo: AP Chinese state-owned oil company China National Petroleum Corporation has pulled out of a US$5 billion deal to develop a portion of Iran’s massive offshore natural gas field, the Islamic Republic’s oil minister said on Sunday, after France’s Total SA earlier withdrew from the agreement over US sanctions.
The South Pars field deal, struck in the wake of Iran’s 2015 nuclear pact with world powers, appears to be just the latest business casualty of America’s pressure campaign on Tehran following President Donald Trump’s unilateral withdrawal of the US from the deal. It also comes as China and the US engage in their own trade war, as Beijing and Washington levy billions of dollars of tariffs on each other’s goods.
Oil minister Bijan Zangeneh, quoted by the ministry’s Shana news agency, on Sunday said that China National Petroleum Corp was “no longer in the project”. He did not elaborate or give any reason for the withdrawal.
Winnnnnnnn-ing
Like I said on an earlier thread.
China will get back in at half the price.
This thread and others seem to indicate that China is running out of cash.
http://freerepublic.com/focus/f-news/3784183/posts
It’s only $5 billion. But is it a worthwhile investment? I’ve also heard that China has a bigger national debt even worse than the US debt.
Iran can no longer pay the Chicoms in dollars, and they can get cheap natural gas anywhere, particularly from the Central Asian countries along the “One Belt, One Road” pathway, without all the headaches the Iran deal brings with it.
Russia is completing a huge gas pipeline to China.
China’s economy is slowing down and slowing down quick.
The official percentage of growth for 2018 was 6.4%, the worst since 2008.
Never accept China’s official numbers because they lie.
Economists, when looking at more comprehensive numbers like retail sales and manufacturer orders, estimate that China is really experiencing negative growth.
More distressing is that $3.2 Trillion of China’s $4.6 Trillion debt is held in Dollars.
In order to counter US tariffs of at least 10%, China has been aggressively devaluing it’s currency. Just last month, it devalued the Yuan by over 5%.
Effectively, devaluing the Yuan/RMB makes all that Dollar denominated debt more expensive. That 5% drop cost China $160 Billion dollars.
And China is stated it will devalue it currency in line with any tariffs imposed by the US.
If the trade war continues, China’s entire cash reserves could disappear very quickly.
Economically, I’d much rather be Trump than Xi.
If Iran wants to sell its oil to China, it has to accept payment in Chinese yuan or barter. Even then the companies that do the transport are subject to sanctions as are their banks that pay the crews or other companies that provision the ships. Iran does not own many tankers themselves. The sanctions are hurting Iran badly.
In every Tariff war, the country with trade deficit has all the trump cards.
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