Iran, China's Sinopec sign oil-field deal

By Parisa Hafezi

TEHRAN (Reuters) - Iran said China's Sinopec would invest around $2 billion under a deal signed on Sunday to develop the huge Yadavaran oil field, the kind of energy deal the United States has been trying to prevent.

Sinopec Group agreed in 2004 to take the lead in developing Yadavaran and to buy 10 million tons of liquefied natural gas (LNG) a year for 25 years. But talks to finalize the contract have been protracted, as in other Iranian energy deals.

"Implementation of the contract will start immediately," Iranian Oil Minister Gholamhossein Nozari told Reuters after the signing ceremony. "Now Sinopec will invest around $2 billion in Iran for the development of Yadavaran."

Zhou Baixiu, head of Sinopec's international exploration and production unit, said LNG was not part of Sunday's agreement, but that he hoped to discuss it with Iran in the future.

"We are very happy to sign this contract," he said.

Chinese officials have said tough commercial negotiations, not a threat of more United Nations sanctions on Iran because of its disputed nuclear plans, had delayed the agreement.

Washington, which is leading international efforts to isolate Tehran over its atomic activities, has sought to discourage international companies from investing in one of the world's largest oil exporters.

China has so far been reluctant to back a U.S. drive for further sanctions against Iran, which is Beijing's third-largest supplier of imported crude oil and also a growing trade partner in other areas.