China Signs Oil Deal with Iranian Company

Even as the United Nations maneuvers toward a vote on expanded sanctions against Iran – which Beijing has reportedly approved – China’s main offshore oil and gas company is reported to have signed a $16 billion deal to develop an Iranian gas field.
In doing so, China is maintaining its position that it does not support actions against Iran that “undermine normal trade and economic cooperation.” A Chinese Foreign Ministry spokesman said the deal would mean state-owned China National Offshore Oil Corporation, or CNOOC, would help develop Iran’s North Pars gas field.
The U.S. State Department says Washington is said to be looking into whether the CNOOC deal breaches U.S. law. The Chinese company has its shares listed on the New York Stock Exchange, and is therefore subject to American laws.