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
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
The combined value of all projects planned or under way in the five North African countries is about $739bn
The signing on 11 December 2017 of an agreement between Egypt and Russia ...
READ MORE
Arabtec and Trojan have confirmed they may collaborate in the future
After high-profile mergers in the financial, energy and real estate sectors, Abu Dhabi’s consolidation drive is now turning to construction.
On ...
READ MORE
This year looks good compared to 2019, when there was a record low for contract awards
An estimated $3.17bn-worth of power generation contracts were awarded in the first nine months of ...
READ MORE
Chinese engineering, procurement and construction (EPC) contractors are executing at least $13bn-worth of power and water contracts in the GCC
The outbreak of the novel coronavirus in China could affect the ...
READ MORE
Five key things to remember when navigating the procurement-enabled localisation landscape
Middle East countries wishing to see a socio-economic return on the billions spent developing their energy reserves have unleashed an ...
READ MORE
Appointed adviser will assist with programme to privatise 55 primary healthcare centres
Saudi Arabia’s Healthcare Ministry is preparing to award the advisory contract for the programme to privatise 55 primary healthcare ...
READ MORE
A team of China State Construction Engineering Corporation and South Korea’s SK Engineering has been awarded the first package for Stage 2 of the federal railway
The award of the first ...
READ MORE
The UAE logistics industry is taking on lessons from the pandemic to reshape its business models
The logistics and warehousing sectors are an integral part of the business value chain, ...
READ MORE
Middle East manufacturers need to decarbonise their operations to be competitive. It is not easy.
Watch the on-demand webinar here
Middle East manufacturers must invest in decarbonising their operations and their supply ...
READ MORE
IMF expects UAE’s non-oil GDP growth to accelerate
North Africa is a challenging market with huge
Abu Dhabi’s consolidation efforts turn to construction
Contract award delays beset power sector
Coronavirus crisis could affect project delivery
Keeping up with localisation goals
EXCLUSIVE: Saudi Arabia prepares to award health centre
Etihad Rail award is strategic for UAE, Gulf
UAE logistics actively mitigates disruption
Net zero challenge for Middle East manufacturers
23 November, 2017 | .By ANDREW ROSCOE
