A new round of oil deals shows all the signs of a deepening corrupt relationship between the mullahs of the Islamic Republic of Iran and the Communist Party leadership of the People’s Republic of China.
Supreme Leader Khamenei’s recent seizure of Iran’s oil industry – and placing it in the control of his son – shows that the country’s top clerical authorities are in cahoots with the PRC leaders.
GreenCorrespondents.com has the exclusive. The internal dissident news organization also brought out an Iranian Ministry of Intelligence document that details high-level corruption in the regime, including corruption relating to oil deals with China.
Involved in the deal are the chief of Iran’s armed forces, representing Khamenei’s office; and Khamenei’s representative in the Revolutionary Guards (IRGC), as well as Finance Minister Shamseddin Husseini.
On April 21, 2011 a new secret contract was signed during the 14th Iran-China joint committee meeting in Beijing. The terms of this contract had previously been negotiated. The signing followed the major annual Oil & Gas Refining and Petrochemical Exposition in Tehran.
A group of delegates including Major General Hassan Firouzabadi, chief Iran’s armed forces joint chief of staff and a member of the Expediency Council, who represented Khamenei’s office; and Hojjatoleslam Ali Saidi, Khamenei’s representative in the Revolutionary Guards, who represented Khatam al Anbia (the Revolutionary Guards engineering division) accompanied Iran’s finance minister, Shamseddin Husseini.
China demands permanent oil and gas concessions
The Chinese had already expressed their discontent with their situation in Iran’s oil and gas sector in 2010, stressing that their share in this sector had not increased in proportion to the economic risk that they had undertaken with regards to international sanctions. They added that unless they were offered permanent concessions, they could easily walk away from Iran’s oil and gas market. They proposed to pay the shares of Khatam al Anbia, Khamenei’s office and NIOC (National Iranian Oil Company) separately. They also agreed to make substantial prepayments to each of the above mentioned if the oil concessions were made according to their terms.
Khamenei and son take control of oil in conjunction with China contract
Based on this contract, all stages of production, distribution and sales of oil have been entrusted to the Chinese government. Petro Nahad, an exclusive organization within Khamenei’s office that has control over the extraction and sales of oil and gas, was established in accordance with this contract. Petro Nahad operates under the provisions of this contract as Petro Nahad Bonyad and has opened an office in Shanghai called Petro Nahad Shanghai. Each of these divisions receive their shares separately.
The proposal for this contract was sent to Khamenei’s headquarters after it was approved by the Chinese government. A council led by Ali Akbar Velayati (former foreign minister and current special advisor to Khamenei who is said to have the last word on every issue) approached Khamenei with this proposal stressing the dire economic conditions of Iran. They stated that the only way to save the country from international sanctions and the crisis surrounding the production and sales of oil and gas was to hand it over to the Chinese.
Companies that can be targets of international sanctions
On the Iranian side the parties are Petro Nahad Bonyad, Petro Nahad Shanghai, Khatam al Anbia and NIOC. On the Chinese side, the parties are CNOOC, Sinopec, China Petrochemical, China Natural Gas, China Natural Petroleum Corp., Fush Chemical among others. The Chinese have also included Russian companies Gazprom, Lukoil and Rosneft as small players in this deal.
Confirmation of meeting
Other news services report that Iran’s Minister of Finance and Economic Affairs, Seyed Shamseddin Husseini, arrived in Beijing on April 21, 2011, to take part in an Iran-China Joint Economic Committee. Husseini announced that the two regimes will establish a “joint oil and gas committee” to accelerate the execution of energy projects. His Chinese counterpart stressed a desire to deepen ties with the Islamic Republic. The two sides signed a cooperation agreement.
Terms of each oil and gas field
The deal for each oil and gas field has its own individual terms. The Petro Nahad transactions are opaque and under the total control of Khamenei and his son. It is not known whether Petro Nahad Shanghai is a secret partnership between the Khamenei family and their Chinese partners to mask the transactions; this detail remains to be understood.
According to GreenCorrespondents.com, the summary of the provisions of the April 21, 2011 agreement is as follows:
1) South Pars oil and gas field: Phases 14 to 26; 69% Chinese (CNOOC and Sinopec), 31% Khatam al Anbia;
2) Azadegan oil field: 66% Chinese companies (9 percent of the shares go to Lukoil) and 14% NIOC, 10% Khatam al Anbia and 10% Petro Nahad Bonyad;
3) Yadavaran oil field: Kooshk and Hosseinieh oilfields; 58% Fush Chamical and CNOOC, 2% Petro Nahad Shanghai, 2% Petro Nahad Bonyad and 38% NIOC;
4) Mansour Abad oil field: 57% share of CNOOC, 3% Petro Nahad Bonyad, 40% NIOC;
5) North Pars oil field: 40% CNOOC, 30% Petro Nahad Bonyad, 30% NIOC;
6) Changooleh oil field: 35% CNOOC (with Sino Chemical Co.), 16% Rosneft, 4% Petro Nahad Shanghai and 45% Khatam al Anbia;
7) Azar oil field: 40% CNOOC and Shanghai Petrochemical, 15% Russian companies, 5% Petro Nahad Bonyad, 40% NIOC;
8) Andimeshk oil field: 50% CNOOC, 24% Khatam al Anbia, 20% National Iranian Oil Company and 6% Petro Nahad Shanghai.
9) Ramin oil field, phases one to five: 52% China Petroleum, 10% Lukoil and 38% NIOC;
10) Sumar oil field: 40% CNOOC, 40% Khatam al Anbia and 20% NIOC.
The above mentioned oilfields contain an estimated 88 billion barrels of oil with a rough value of $1,044 bilion if sold as crude and over $1,652 billion if partially sold as refined petroleum and other oil products.
China facilitates massive corruption of Iranian leaders
The Chinese government and their oil companies have paid huge sums of money to Iranian officials for winning these concessions. A major recruitment agency in Malaysia specializing in the banking sector is exclusively serving Iranian political and intelligence officials involved in this deal for opening and managing their personal accounts. Also, countless personal accounts have been opened in Chinese banks by Iranian officials and some of these banks have been established solely by these deposits.