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
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
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, ...
READ MORE
CEO of UAE bank says fall in oil prices has exposed problems in GCC construction practices
Construction industry clients and contractors in the GCC must change the way they do business ...
READ MORE
By seeking expressions of interest for an estimated $4bn project, Borouge has helped to boost the market
Borouge, the 60:40 joint venture (JV) of Abu Dhabi National Oil Company (Adnoc) and Austria’s ...
READ MORE
Mashreq CEO says customers can expect a transformation in the way they do their banking
The banking sector is on the cusp of a robotics revolution that is set to transform ...
READ MORE
As Abu Dhabi’s groundbreaking $1.6bn Strategic Tunnel Enhancement Programme (STEP) nears completion, the emirate’s wastewater company is now turning its focus to improving and rehabilitating existing infrastructure.
“We have spent the ...
READ MORE
Construction contractor and tech firms collaborate to establish large-scale production centre in Dubai
The Middle East’s first large-scale concrete additive manufacturing unit has been inaugurated in Dubai.
UAE-based Concreative unveiled the unit ...
READ MORE
MEED's latest intelligence report finds that while short-term challenges must still be overcome, the UAE remains an attractive place to do business as its 50th anniversary nears
As the world recovers ...
READ MORE
Dubai Metro’s Route 2020 financing highlights crucial role of technology firms in infrastructure projects
The growing prominence of infratech, a portmanteau for infrastructure and technology, further highlights the disruptive impact of ...
READ MORE
The contract for substructure works at Al-Maktoum International airport is estimated to be worth $2.7bn
Dubai Aviation Engineering Projects (DAEP) is reviewing updated offers for the estimated AED10bn ($2.7bn) substructure contract for Concourse ...
READ MORE
Adnoc presses ahead with onshore projects
EXCLUSIVE: Abu Dhabi moves on stalled rail project
EXCLUSIVE: Construction industry must change its ways
Abu Dhabi bolsters regional petrochemicals market
EXCLUSIVE: Robots set to transform GCC banking
Abu Dhabi turns its attention to efficiency
Dubai inaugurates Middle East’s first industrial-scale concrete 3D
UAE set for post-Covid recovery in 2021
Investors favour technology-led consortiums
Dubai reviews updated bids for its largest construction
23 November, 2017 | .By ANDREW ROSCOE
