December 29, 2006
China took the first step. It violated the Iran sanctions first. CNOOC, the Chinese national oil company will invest $16 billion to develop Iran's Pars natural gas field in exchange for 50 percent of the field's liquefied natural gas LNG production.
Sources from China say the deal was made before the sanction were in place and therefore China did not violate. But smells like it, it looks like it, it is a violation.
Chairman-elect of the U.S. House International Relations Committee Tom Lantos said Dec. 29 that the committee will examine a memorandum of understanding between Chinese national oil company CNOOC and Iran to determine if the agreement merits sanctions for violating the Iran Sanctions Act once Congress reconvenes in January.
Chinese Government sources call it a matter ChinaÂ’s strategic needs and issue of Chinese self determination.