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
Rapid reform in the healthcare market across the GCC is driving significant growth of the pharmaceutical market.
The governments of UAE and KSA aim to boost domestic production of pharmaceuticals and ...
READ MORE
The state energy enterprise has been focusing on upgrading infrastructure at its onshore oil and gas fields this year, as market factors impede progress on cost-intensive projects
With timelines extended and ...
READ MORE
Consolidated Contractors Company (CCC) is developing four new business lines, says president of engineering and construction Samer Khoury
Lebanon’s Consolidated Contractors Company (CCC) is tackling the acute problems facing the region’s construction sector ...
READ MORE
Experts from Mashreq Bank credit the changing economic landscape and rising role of digitalisation in enhancing supply chain finance solutions
Digitalisation and a growing interest in supply chain resilience have been ...
READ MORE
The UAE is seeing muted growth in 2017, estimated at less than 1.5 per cent, as low oil prices and production cuts weigh on the economy.
The non-hydrocarbons sector is faring ...
READ MORE
The medical talent spectrum includes physicians, nurses, para-medical personnel, technicians, support staff and administrative staff etc. The World Health Organisation (WHO) is reinforcing the importance of an effective, efficient, and ...
READ MORE
There is a widespread expectation that the tax regime will grow
On 21 May, the UAE cabinet agreed to allow 100 per cent foreign ownership of companies in the UAE and 10-year visas ...
READ MORE
Unified regulations would enable more evenly balanced logistics growth
The opening of Jebel Ali Port in 1979 facilitated Dubai’s rapid transformation into a global logistics hub. In 2017, Jebel Ali Port ...
READ MORE
Local manufacturers are keen to support the UAE’s long-term food security vision, but progress is hampered by issues such as the Russia-Ukraine conflict, inflation and increased competition
Local food and beverage ...
READ MORE
Higher oil prices and fiscal policy adjustments will reduce GCC sovereign funding requirements until 2021
The GCC states’ cumulative funding requirements are accumulating at a slower rate than expected, and are estimated to reach $300bn ...
READ MORE
Trend of increasing local pharmaceutical manufacturing capabilities in
Adnoc presses ahead with onshore projects
CCC finds strength in diversity as construction market
The evolving role of supply chain finance
A disappointing year for growth in the UAE
Medical talent- Backbone of the healthcare ecosystem
New UAE companies law could be a precursor
Policy change needed to smooth logistics growth
UAE food producers struggle with global challenges
GCC funding requirements are forecast to slow
23 November, 2017 | .By ANDREW ROSCOE
