China strengthens role in region’s energy sector
23 November, 2017 | By ANDREW ROSCOE
The signing of a framework agreement between Abu Dhabi National Oil Company (Adnoc) and China National Petroleum Corporation (CNPC) covering potential offshore oil and sour gas fields is the latest indicator of growing Chinese influence in the Gulf’s hydrocarbons industry.
The framework agreement followed a day after the state oil firm had awarded a CNPC subsidiary a contract to increase the capacity of its Bab onshore field. In February, CNPC was granted an 8 per cent interest in the emirate’s onshore concession.
It is not just the UAE that China is targeting to grow its energy interests in the Gulf. It was recently reported that Beijing had made an offer to Saudi Aramco to directly buy the 5 per cent stake planned for an initial public offering (IPO) in the world’s largest oil company.
Elsewhere in the Middle East and North Africa, CNPC was the first foreign oil company to sign an oil services contract in Iraq after Saddam Hussein’s regime was toppled. In October this year, a PowerChina subsidiary signed a $2bn deal to develop Egypt’s Ain Sokhna refinery.
In addition to exporting large companies able to deliver projects on low budgets, China is also increasingly keen to direct financing to projects abroad. The Asian country is providing the majority of the financing for the $3.4bn Hassyan coal-fired power plant in Dubai, which is being funded by major banks and the Chinese sovereign wealth fund Silk Road.
With the region increasingly looking for partners that can provide financing as well as expertise, Beijing is set to become an increasingly powerful player across the Middle East’s energy sector.
Related Posts
Project clients and contractors will benefit from increased collaboration and more balanced contracts
Q&A with Asel el-Housan, founder and head of commercial and contracts at AEH Consultancy
What are the biggest opportunities to ...
READ MORE
Supply and demand imbalance is resulting in less office space being built and property owners offering tenants generous incentives
Dubai’s office market continues to be oversupplied, resulting in less office space ...
READ MORE
Etihad Rail last week awarded AED4.4bn-worth of contracts for packages B and C to a Chinese/local team
Etihad Rail has received bids for Package D of the second stage of the ...
READ MORE
Riyadh has cut capital spending and few new projects outside oil and gas sectors have started in recent years
Saudi Arabia should be the GCC’s largest construction market by far. Its ...
READ MORE
Cuts to government infrastructure spending may not be as disappointing in the future
Dubai’s budget for 2019 was a disappointing one for the projects sector, with 22.6 per cent less spending ...
READ MORE
Oil and gas investment to fall by almost a third in 2020
Annual energy investment is set to fall by an historic $400bn in 2020, according to the International Energy Agency’s ...
READ MORE
Etihad Rail’s link with Khalifa Port underscores the UAE’s commitment to integrated, complementary transport options
As 2020 has progressed, it has become increasingly evident that the slowdown in UAE construction activity ...
READ MORE
Abu Dhabi Electricity & Water Authority (Adwea) is planning to oversee the development of the emirate’s first independent water project (IWP).
Adwea recently received bids from firms to provide technical advisory ...
READ MORE
Expo and stimulus spending could lift non-oil GDP growth to 3 per cent in 2020
The Washington-based IMF has said the UAE’s non-oil GDP growth could accelerate to 3 per cent ...
READ MORE
Oversubscription in $3bn credit facility indicative of strong interest from banks
Dubai’s aviation and finance authorities are still weighing options in terms of funding the logistics corridor planned for Dubai South, the largest ...
READ MORE
MARKET TALK: Rebalancing the construction risk
Oversupply continues to challenge Dubai office market
Abu Dhabi receives bids for next Etihad rail
Saudi Arabia should be the GCC’s largest construction
Dubai’s switch from strategic to tactical infrastructure could
Energy investment to fall by $400bn
UAE’s multi-modal strategy shifts up a gear
EXCLUSIVE: Abu Dhabi plans independent water project
IMF expects UAE’s non-oil GDP growth to accelerate
Dubai weighs options for airport megaproject funding
23 November, 2017 | .By ANDREW ROSCOE
