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Sinopec Taps Oil Block in Iran
Sinopec, China's oil giant, signed an agreement with the National Iranian Oil Company (NIOC) to jointly exploit an oil block in Iran.
The contracted area, located in Zavareh-kanshan, 205 kilometers south of Teheran, covers 4,670 square kilometers and Sinopec will be in charge of operation, according to the contract.
Sinopec last year imported 7.35 million tons of crude oil from the NIOC through its import agent and the volume is expected to rise this year.
Analysts here noted that seeking overseas oil resources will be an effective way for China to alleviate its heavy reliance on imports. Imported oil has made up more than a quarter of the nation's oil consumption.
The two companies also signed an agreement to launch a 150-million-US-dollar project to upgrade two NIOC refineries, said the source.
Sinopec Engineering Incorporation, a subsidiary of Sinopec, will be responsible for the design, purchase and construction of the project, the largest it have had so far.
The project allows NIOC to pipeline its oil to nations along the Caspian Sea, the source added.
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