The China Thread

US panel to review CNOOC-Iran gasfield development deal - US lawmaker


WASHINGTON (AFX) - A US congressional committee will review a gasfield
development deal between China National Offshore Oil Corp (CNOOC) and Iran to
determine if US sanctions are called for against the Chinese company, a US
lawmaker said.
Congressman Tom Lantos, a California Democrat and chairman-elect of the
House International Relations Committee, said that "when the Congress convenes
next week, the International Relations Committee will closely examine the
reported 16-billion-dollar Memorandum of Understanding China's state-owned oil
company signed with Iran to develop Iranian gas fields."
"Specifically, we will examine whether this agreement activates United
States law requiring sanctions against companies involved in Iranian energy
development, as is potentially the case here," Lantos said in a statement
Friday.
"Congress recently extended and strengthened the Iran Sanctions Act, as part
of legislation which I co-sponsored, and China needs to be warned of the serious
penalties it may incur if it pursues implementation of this agreement," he
added.
Iran and CNOOC signed a preliminary 16 bln usd deal to develop a giant
natural gas field, Iran's semi-official Fars news agency reported earlier this
month.
The deal is aimed at developing Iran's northern Pars gas field and building
plants to produce liquefied natural gas, with each party taking 50 pct of the
produced LNG.
afp