China strengthens role in region’s energy sector

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
MEED and Mashreq renew construction partnership
Partnership will continue to combine MEED’s market expertise with Mashreq’s ongoing focus on industry specialisation and client needs MEED and Mashreq have announced the extension of their unique construction partnership to ...
READ MORE
Coronavirus executive briefing from MEED
Understand the Covid-19 outbreak, its impact on the global and regional economy, and initial implications for specific sectors   Click here to download the full document
READ MORE
Construction 4.0
  The UAE's ambitious Vision 2021 strategy provides an opportunity for the construction industry to harness the latest digital and technological innovations that are transforming project delivery around the world. These innovations ...
READ MORE
Green avenues serve as viable prospects for Islamic financing
Shariah-compliant lending can help narrow the investment gap necessary to achieve the UN SDGs by 2030 The gathering of global leaders, policymakers and business entities at Cop27 in Sharm al-Shaikh saw ...
READ MORE
Ten Minutes into the Future of Energy
CEO Mohamed al-Ramahi tells MEED he plans to increase Masdar’s international investments in renewable energy Visitors to the headquarters of Masdar (Abu Dhabi Future Energy Company) cannot fail to notice the bright, ...
READ MORE
Abu Dhabi sets target tender date for 1.5GW solar project
The client received prequalification entries for PV solar plant earlier this month Emirates Water & Electricity Company (Ewec) is planning to issue the request for proposals (RFP) for a planned 1.5GW ...
READ MORE
Egypt construction growth to slow in 2020
Construction outlook downgraded as Covid-19 puts pressure on government revenues this year The construction output growth forecast for Egypt has been reduced to 7.7 per cent in 2020, with further downward revision ...
READ MORE
Focus turns to infrastructure as Dubai curtails real estate plans
The speed at which the government has moved to control supply has left construction firms in the emirate wondering where new work will come from Dubai’s construction sector has been turbocharged ...
READ MORE
Regulating Construction: Adapting to New Standards
Regulatory changes pose challenges for companies and regulators. But they also provide opportunities The Gulf construction industry is facing an important transition as it seeks to iron out the chronic weaknesses ...
READ MORE
Saudi Arabia balances economics and safety
Plunging oil prices triggered a SR34.1bn deficit in Saudi Arabia’s first quarter budget The region’s largest economy has the most to gain, or lose, depending on how quickly the Covid-19 pandemic is contained ...
READ MORE
MEED and Mashreq renew construction partnership
Coronavirus executive briefing from MEED
Construction 4.0
Green avenues serve as viable prospects for Islamic
Ten Minutes into the Future of Energy
Abu Dhabi sets target tender date for 1.5GW
Egypt construction growth to slow in 2020
Focus turns to infrastructure as Dubai curtails real
Regulating Construction: Adapting to New Standards
Saudi Arabia balances economics and safety
23 November, 2017 | .By ANDREW ROSCOE