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 cancellation of the Al-Zour North 2 IWPP tender is the latest setback for the country’s ambitious private development programme
The cancellation of the tender for the Al-Zour North 2 independent ...
READ MORE
Governments across the Mena region are recognising the need to strategise their renewable energy investments
With nearly $76bn worth of renewable energy projects planned or underway, according to regional projects ...
READ MORE
Government departments reportedly asked to value-engineer ongoing schemes and hold off on new projects
Dubai’s Department of Finance ordered a 50 per cent cut in capital spending and asked to delay ...
READ MORE
The tenders for The Tower and the shopping mall at Dubai Creek Harbour evoke memories of 2004, when contractors competed for the deals to build what would become Burj Khalifa ...
READ MORE
Ras al-Khair power and water facility will be first of kingdom’s state-owned desalination plants to be privatised
Saudi Arabia’s Saline Water Conversion Corporation (SWCC) has invited consultants to bid for advisory ...
READ MORE
Sentiment in the GCC’s construction market has improved since 2016
The GCC’s construction sector has adjusted to the new normal of lower oil prices and reduced government spending, according to Pinsent ...
READ MORE
The lowest bidder is the local Al-Naboodah followed by another local company DBB
Dubai’s Roads & Transport Authority (RTA) has received bids from contractors for the contract to build the next ...
READ MORE
Expectations of rising global demand come amid vaccine optimism
Oil forecasters are expecting global crude prices to move higher in 2021 amid increasing optimism about the viability of Covid-19 vaccines.
Forecasters from ...
READ MORE
The bids submitted for the emirate’s first CSP project could lead to a significant growth in the deployment of the technology across the region
The submission of the 9.45$cents per kilowatt ...
READ MORE
The Mashreq JLL MEED Healthcare Partnership is a knowledge-sharing initiative that aims to provide a platform for senior healthcare industry executives to discuss and address the challenges facing one of ...
READ MORE
Back to the Drawing Board for Kuwait
BRIEFING PAPER: Sustainable Vision
Dubai said to halt new project spending
Tendering in 2017 reflects tightening margins for developers
EXCLUSIVE: Saudi Arabia to privatise world’s largest desalination
Construction sector adjusts to the new normal
Dubai receives Shindagha Road Corridor construction bids
Oil price expected to move higher in 2021
Dubai’s solar market continues to set records
Remodelling Healthcare: Mashreq JLL MEED Healthcare Partnership Newsletter
23 November, 2017 | .By ANDREW ROSCOE
