Trump says China can continue to purchase oil from Iran
US President Donald Trump said on Tuesday that China can continue to purchase oil from Iran and hoped that they would also buy “plenty” of it from the United States.
“China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also,” he said in a post on Truth Social.
In a phone call with Iranian counterpart Abbas Araqchi on Tuesday, Chinese Foreign Minister Wang Yi said China supports Iran’s commitment to safeguarding national sovereignty and security, and hopes a “real ceasefire” can be achieved on that basis.
It is noteworthy that China imports around 43 million barrels of oil per month from Iran – accounting for some 90% of Iran’s oil exports and roughly 13.6% of China’s crude purchases.
Around 65% of total crude and condensate shipped through the Strait of Hormuz off Iran is destined for China, according to shipping data firm Vortexa.
China National Petroleum Corp (CNPC) in 2016 signed a $4.8 billion deal with France’s Total to develop the offshore South Pars gas field in the Gulf with an Iranian state firm.
CNPC’s stake of 30% was worth around $600 million. However, the state-owned petroleum giant pulled out of the project due to U.S. pressure in 2019.
CNPC also signed a deal in 2009 to develop the North Azadegan oil field, with the first phase valued at about $2 billion. The first cargo of 2 million barrels was shipped to China in 2016.
China’s biggest refiner, Sinopec, signed a $2 billion deal to develop the Yadavaran oil field in 2007. In 2017, Sinopec signed a contract worth about $2.1 billion to upgrade a refinery in Abadan near the Gulf coast. It remains under construction.
