China's Railway Giant Signs Deal to Supply Metro Cars to Iran
Total Page:16
File Type:pdf, Size:1020Kb
4 March 8, 2018 ECONOMIC NEWS China’s Railway Giant Signs Deal to Total’s Pouyanne Gambles on Supply Metro Cars to Iran “Hence, the production and supply company had denied the report, saying Middle East Oil of wagons needed compatible with that there was no deal or decision but world-class technology will be carried merely a public tender. PARIS (Bloomberg) - The French oil giant became the first Western major out for the first time at Wagon Pars in Iran has announced plans to invest to sign a deal with Iran following the end of sanctions, has added projects partnership with a foreign company $25 billion over the next 10 years in in Abu Dhabi and Qatar and Pouyanne said last week’s $450 million with an investment of 25 million the modernization and expansion of its acquisition in Libya is one of his “best deals ever.” He is expanding in the euros,” Moazzami added. railway network. Under the plan, Iran region even as some of his biggest rivals focus on politically safer U.S. shale. Another Chinese company signed seeks to stretch out the nationwide “We’re ready to take risks,” Pouyanne has said. a deal with Iran’s Ministry of Roads railroad line to 25,000 kilometers by In a way, Total is only bedding down in a region that has been prolific and Urban Development to build a 2025 from under 15,000 kilometers for the company for years. Pouyanne is chasing some of the lowest cost railway between the cities of Shiraz now. barrels in the Middle East and Africa and picking up assets as other Western and Bushehr in the country’s south Moazzami said negotiations have companies exit from countries that have been torn by war and strife for with $700 million of investment. been held on supply of 5,000 metro years. The Export-Import Bank of China cars worth more than 6 billion euros, But it is also a gamble. In Libya, Total is buying in an area that (EXIM) has signed a $1.5 billion deal most of which have been finalized and occasionally comes under attack. In Iran, its deal is shaking due to Donald to finance the electrification of a high- will gradually be announced. Trump renewing the sanctions waiver. And it risks stepping into the current TEHRAN (Dispatches) - China’s parts for assembly at Iranian train speed rail line being built by Chinese In July 2017, Iran’s state rail diplomatic dispute between Qatar and the United Arab Emirates by investing CRRC Nanjing Puzhen Rail Transport manufacturing company Wagon Pars, companies between the Iranian cities company and its Italian counterpart in the two nations simultaneously. on Wednesday signed a contract with IDRO Managing Director Mansour of Tehran and Mashhad. signed a final agreement worth 1.2 “There is a risk in Libya. We’re not naive,” he said. “Having access to Iran’s IDRO Group to supply 450 Moazzami said. The Swiss embassy in Tehran said billion euros ($1.37 billion) to build a this concession which has plenty of resources is a good bet for the future.” metro cars for the Iranian cities of “In order to make maximum use Stadler would put the wagons in high-speed railway between the cities Total became the first partner in a 40-year concession for Abu Dhabi’s Ahvaz, Tabriz and Shiraz. of domestic capabilities in the field service from the end of 2020 in the of Qom and Arak. largest onshore oil fields in 2015, while Royal Dutch Shell Plc and Exxon The company, a subsidiary of of rolling stock manufacturing, Iranian capital and its western suburb Later that month, French transport Mobil Corp. -- which had also been in the country for decades -- passed on China’s railway giant CRRC Corps, the contracting party was required of Karaj. company Alstom signed a joint the opportunity. The following year, the French company beat competitors undertook to provide funds up to cooperate with the Wagon Pars However, news and information agreement for the construction of including Shell to replace AP Moeller-Maersk A/S in Qatar’s biggest oil to 85% of the project as well as company of Arak,” he said. platform Swissinfo said on Friday the subway carriages in Iran. field. Total is now also keen to keep its interest in offshore concessions in Abu Dhabi. “Pouyanne has a high risk tolerance,” Helima Croft, commodities strategist at RBC Capital Markets LLC and a former analyst at the Central Iran’s Non-Oil Exports Exceed $41bn Intelligence Agency, said in Houston. “Take Libya: it’s full of competing armed militias. We have seen significant Islamic State activity there too.” TEHRAN (Dispatches) - Iran’s non-oil Meanwhile, Iran’s export of non-oil Part of Pouyanne’s justification for expanding in politically risky goods exports in the first eleven months products to China since the beginning countries could be the way Total sees future oil consumption playing out. of the current Iranian year (March 21, of the current Iranian fiscal year up While Shell and BP Plc see it flattening out in the 2030s, Total forecasts 2017 to Feb. 22, 2018) have surpassed $41 to February 22, 2018 increased 11.29 years of growing demand. billion. percent as compared to last year’s Total and its European peers trace a large part of their historical success to “Iran’s non-oil exports stood at a corresponding period, IRICA reported. gaining access to big and cheap oil deposits in the Middle East and Africa. considerable five percent growth as Iran’s major export products during Yet, the energy world has turned upside down in the last decade as new compared to last year’s corresponding the period included gas condensates technology unlocks massive reserves in American shale rocks. The speed of period,” the latest report released by valued at $6.33 billion, liquefied natural the transition caught some of the oil behemoths flat-footed. Most, including Iran’s Customs Administration (IRICA) gas valued at $2.509 billion, liquefied Shell, are now looking to catch up. said. propane valued at $1.338 billion, Pouyanne doesn’t think Total really needs shale assets to grow. Middle IRICA put the total non-oil exports methanol valued at $1.077 billion and Eastern barrels can be produced for as little as $5, he said. The price of value at $41.69 billion, showing a light oils and byproducts except gasoline drilling rights in the Permian, the biggest shale-oil field in the U.S., has significant 4.96 percent growth as valued at $1.067 billion, it added. increased as production soared. compared to the same period last year. Marathon Oil Corp. wanted to invest in American shale and “exit from the risk” in Libya, making it easier for Total to convince it to sell, Pouyanne Volvo Deems Iran as Top said. Tehran, Baghdad Set Total has plenty of flexible oil assets that can adapt to price changes, so Trade Partner in Trucks doesn’t really need to be in shale, he said. And there are risks in the U.S. too with “plenty of class action and lawyers,” he said. Manufacturing to Broaden Electricity “You have different risks in the world. There is not a perfect quiet place.” TEHRAN (Dispatches) - Iran’s prerequisites for renovating the representative office has been country’s trade fleet, promoting Cooperation selected as the top trade partner self-sufficiency and home- of Sweden’s Volvo Trucks in the made products by 50 percent Russian Firms Could Sign Middle East and North Africa, and developing and reinforcing Saipa Automaker announced. aftersales network were discussed. Iran Oilfield Deals This The announcement came as After preliminary agreements, managing director of Saipa Diesel it was agreed the two sides Month: Novak has left for Sweden at the invitation undertake necessary studies in of the company to receive Trade a short time and take actions to TEHRAN (Dispatches) - Russian would sign three oil deals before Conference Award and hold talks sign memoranda of understanding Energy Minister Alexander Novak the end of the current Persian year with the managing director and (MoUs). says his country’s oil companies this month which will include senior managers of Volvo Trucks. Saipa Diesel was selected as the could sign contracts by March 21 to operation of the fields for 20 years. The two companies have started top trade partner of Volvo Trucks work on Iranian oilfields. Russian companies have signed cooperation in 1972 and have due to its range of orders and More than 10 different fields a record number of initial oil and jointly produced FH, FM and F12 purchasing completely knocked have been presented to Gazprom, gas contracts with Iran since the trucks in Iran. down (CKD) for producing 3,200 Rosneft, Gazprom Neft, lifting of sanctions on the Islamic During meetings between Volvo trucks in 2017. TEHRAN (Dispatches) - 80 percent of Iran’s electricity is Zarubezhneft, Taftneft and Lukoil Republic in early 2016. directors of Saipa Diesel and Volvo Volvo is the biggest producer of Senior Iranian and Iraqi energy generated in ordinary methods, for development, Novak said. Novak said Tuesday Iran was Trucks, various topics including automobiles in Sweden. “These companies made fairly also ready to supply crude oil to officials in a meeting in Iraq 10 percent through hydro- good progress in negotiations. Our Russia but that would depend on have discussed broadening of energy and 10 percent other Iranian colleagues confirmed that future agreements with the buyers relations in the fields of energy through solar and wind energies. specific contracts may be signed of the oil.