China Rushes to Complete $100B Deal With Iran

The completion of the agreement would advance China's global quest for new stocks of energy. It could also undermine U.S. and European initiatives to halt Tehran's nuclear plans, muddling Beijing's relations with outside powers. Caijing, a respected financial magazine based in Beijing, reported on its Web site Thursday that a Chinese delegation comprised of officials from the National Development and Reform Commission -- a top economic policy body -- intends to visit Iran as early as next month to conclude an agreement. The deal would clear China Petrochemical Corp., also known as Sinopec, to develop Iran's Yadavaran oil field. Analysts assume that the Iranian field could produce as much as 300,000 barrels of oil per day, making it one of the larger overseas operations for a Chinese company. Sinopec would hold a 51 percent stake in the Yadavaran project, according to the Caijing report, while India's Oil and Natural Gas Corp. would hold 29 percent. The rest of the venture would be divided among Iranian companies and perhaps other outside investors.