Reuters – China National Petroleum Corp (CNPC) is continuing to take oil from Iranian oilfields where it has ownership stakes, even after the United States re-imposed sanctions on the country’s oil sector, a company executive said on Friday.
The state-owned oil giant entered Iran in 2004 when it acquired the MIS oilfield, in which it now holds a 75 percent stake. CNPC did not give an output figure for the field on its website.
It has also spent billions of dollars on developing the North Azadegan oilfield, which began production in 2016 of about 80,000 barrels per day of crude along with natural gas, according to the company’s website.
“Our main cooperation with Iran is upstream investment. Lifting equity oil is recouping our investment there,” Hou Qijun, deputy general manager for CNPC, said on the sidelines of an industry event.
The United States re-imposed on Monday sanctions targeting Iran’s oil, banking and transport sectors, but offered waivers to some countries to still buy Iranian crude.
Under the waiver, China is allowed to buy 360,000 barrels per day (bpd) of oil from the Islamic Republic for 180 days, two sources familiar with the matter told Reuters this week.
The volume does not include oil Sinopec and CNPC are entitled to under investment deals, the sources said.
China, Iran’s top oil customer, has purchased an average of 655,000 barrels a day of crude oil from Tehran during the January-September period, according to customs data.
Reporting by Aizhu Chen; Writing by Dominique Patton; Editing by Christian Schmollinger