FAST FIVE: China Prepares Its "Nuclear Option" In Trade War
At that point, China agreed a trade-off with the US that in exchange for it halting active development of SP11 it would be allowed to continue its activities in North Azadegan and would be able to go ahead with its development of Yadavaran – the second of China's major Iran projects.
China told the US that its continued involvement in North Azadegan could easily be justified to anyone else who might be interested – such as the mainstream media – on the basis that it had already spent billions of dollars developing the second phase of the 460 square kilometre field.
In order for it to reactivate its development of SP11, China will get a 17.25 percent discount for nine years on the value of all gas it recovers.
“For every one percent increase, the recoverable reserves figure would increase by 670 million barrels, or around US$34 billion in revenues with oil even at US$50 a barrel,” the Iran source said.
If they do create difficulties for our Russian banks then all we have to do is replace dollars,” he said.