Iran has invited China to participate in oil deals valued at more than US$42.8 billion in an attempt to boost the Middle Eastern country’s refining capacity, the South China Morning Post reported, citing representatives from Iran’s Ministry of Petroleum visiting Beijing with the aim of attracting Chinese investment. The projects include upgrades of existing refineries, construction of new refineries, and the building of a 1,640-kilometer oil pipeline from the Caspian Sea to the Gulf of Oman. Iran will offer a 5% discount on the price of crude sent to the refineries, an eight-year tax exemption as well as free and unlimited transfer of profits from the projects. Foreign investors will also be allowed to raise their equity holdings in new refinery projects to 80%. China has been actively seeking foreign energy assets and natural resources to maintain its economic growth.
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