Identifier
Created
Classification
Origin
08BEIJING4097
2008-10-30 03:09:00
CONFIDENTIAL
Embassy Beijing
Cable title:
CHINA'S SINOPEC SAYS NO PROGRESS ON ENERGY DEALS
how-toVZCZCXRO8669 OO RUEHCN RUEHGH RUEHVC DE RUEHBJ #4097 3040309 ZNY CCCCC ZZH O 300309Z OCT 08 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC IMMEDIATE 0686 INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE RHEBAAA/DEPT OF ENERGY WASHINGTON DC IMMEDIATE RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE RHEHNSC/NSC WASHDC IMMEDIATE RUEAIIA/CIA WASHINGTON DC IMMEDIATE
C O N F I D E N T I A L BEIJING 004097
SIPDIS
E.O. 12958: DECL: 10/27/2018
TAGS: CN ECON EFIN ENIV ENRG IZ
SUBJECT: CHINA'S SINOPEC SAYS NO PROGRESS ON ENERGY DEALS
WITH IRAN
Classified By: Minister-Counselor Rob Luke Reasons 1.4 (b) and (d)
C O N F I D E N T I A L BEIJING 004097
SIPDIS
E.O. 12958: DECL: 10/27/2018
TAGS: CN ECON EFIN ENIV ENRG IZ
SUBJECT: CHINA'S SINOPEC SAYS NO PROGRESS ON ENERGY DEALS
WITH IRAN
Classified By: Minister-Counselor Rob Luke Reasons 1.4 (b) and (d)
1. (C) Summary. A China Petroleum and Chemicals Corporation
(SINOPEC) official stated that SINOPEC has not made any
progress in its oil projects in Iran and that it must comply
with guidance from the Chinese government and UN sanctions
against Iran. A Chinese academic at an MFA affiliated think
tank told us separately that the Chinese government asked
unspecified oil companies with projects in Iran to put their
contracts on hold to demonstrate cooperation with the West,
but he did not expect the measure to last. End Summary.
2. (C) SINOPEC's Deputy Director General for International
Cooperation Zhang Zheng on October 24 told the Embassy that
there has been no progress in SINOPEC's energy agreements
with Iran. (Note: SINOPEC in December 2007 signed a $2
billion agreement with the Iranian National Oil Company to
develop the Yadavaran oil field, aiming to produce 85,000 bpd
within four years and an additional 100,000 bpd within
another three years. End note.) He emphasized that as a large
state-owned enterprise, SINOPEC must follow directives from
the central government. Iran and foreign media may release
information to the contrary, but this should not be trusted.
3. (C) According to MFA-affiliated Chinese Academy of Social
Sciences (CASS) Institute of Middle East Studies professor
Yin Gang, the Chinese central government asked unspecified
oil companies to put projects in Iran on hold to demonstrate
cooperation with the West, though he noted that a couple
contracts were still moving forward. This was a temporary
policy and he predicted that if the Iranian nuclear crisis
dragged on for more than another year or two, the government
would lift current restrictions on oil companies engaged in
Iran. Oil company executives in the targeted companies were
upset about the restrictions and complained that the Chinese
government "was surrendering to the US."
Piccuta
PICCUTA
SIPDIS
E.O. 12958: DECL: 10/27/2018
TAGS: CN ECON EFIN ENIV ENRG IZ
SUBJECT: CHINA'S SINOPEC SAYS NO PROGRESS ON ENERGY DEALS
WITH IRAN
Classified By: Minister-Counselor Rob Luke Reasons 1.4 (b) and (d)
1. (C) Summary. A China Petroleum and Chemicals Corporation
(SINOPEC) official stated that SINOPEC has not made any
progress in its oil projects in Iran and that it must comply
with guidance from the Chinese government and UN sanctions
against Iran. A Chinese academic at an MFA affiliated think
tank told us separately that the Chinese government asked
unspecified oil companies with projects in Iran to put their
contracts on hold to demonstrate cooperation with the West,
but he did not expect the measure to last. End Summary.
2. (C) SINOPEC's Deputy Director General for International
Cooperation Zhang Zheng on October 24 told the Embassy that
there has been no progress in SINOPEC's energy agreements
with Iran. (Note: SINOPEC in December 2007 signed a $2
billion agreement with the Iranian National Oil Company to
develop the Yadavaran oil field, aiming to produce 85,000 bpd
within four years and an additional 100,000 bpd within
another three years. End note.) He emphasized that as a large
state-owned enterprise, SINOPEC must follow directives from
the central government. Iran and foreign media may release
information to the contrary, but this should not be trusted.
3. (C) According to MFA-affiliated Chinese Academy of Social
Sciences (CASS) Institute of Middle East Studies professor
Yin Gang, the Chinese central government asked unspecified
oil companies to put projects in Iran on hold to demonstrate
cooperation with the West, though he noted that a couple
contracts were still moving forward. This was a temporary
policy and he predicted that if the Iranian nuclear crisis
dragged on for more than another year or two, the government
would lift current restrictions on oil companies engaged in
Iran. Oil company executives in the targeted companies were
upset about the restrictions and complained that the Chinese
government "was surrendering to the US."
Piccuta
PICCUTA