China's Sinopec says no final agreement yet with Iran on LNG purchase

http://www.afxpress.com ^ | Wednesday, November 9, 2005

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China's Sinopec says no final agreement yet with Iran on LNG purchase BEIJING (AFX) - China Petroleum & Chemical Corp (Sinopec) (SHA 600028; HK 0386; NYSE SNP) said it has not yet reached a final agreement with Iran on the purchase of liquefied natural gas (LNG) and the exploitation of the Yadavaran oil field

"We have an in-principle contract," the company's vice president, Cao Xianghong said at a business conference

"No agreement has been reached," Cao said. He said Sinopec and Iran have been in talks for some time but denied senior Sinopec officials were scheduled to visit Iran in the near future

Last October Iran and China signed a preliminary accord under which China would buy 10 mln tons a year of liquefied natural gas for 25 years. The deal between the two parties also grants Sinopec the right to exploit the Yadavaran oil field on a buy-back basis in cooperation with a major international oil company

"We are still negotiating. We are not sure when the final contract will be signed," Cao added

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