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
MEED interviews the head of the kingdom’s Renewable Energy Project Development Office
Saudi Arabia’s Renewable Energy Project Development Office (Repdo), which is part of the Ministry of Energy, Industry & Mineral Resources, ...
READ MORE
Emirate is planning to develop photovoltaic solar installations in the Gulf
State utility Dubai Electricity & Water Authority (Dewa) has issued a request for proposals for a consultancy contract for studying ...
READ MORE
Increased spending is needed to avoid future oil shortages, say industry leaders in Abu Dhabi
There is a growing consensus among international oil companies and global energy analysts that peak demand ...
READ MORE
The two energy companies will explore joint technology research and development (R&D) partnership opportunities across the oil and gas upstream value chain
Abu Dhabi National Oil Company (Adnoc) has signed a ...
READ MORE
The national oil companies are ramping up crude production as they push for increased market share
Oil prices have been on free fall since the collapse of the three-year-plus cooperation mechanism between ...
READ MORE
Maire Tecnimont is expected to take between one and one a half years to complete the feed works
Abu Dhabi Polymers Company (Borouge), the joint venture of Adnoc and Austria’s Borealis, ...
READ MORE
So far this year, the UAE has awarded $2.3bn-worth of engineering, procurement and construction (EPC) contracts for hydrocarbons projects, according to regional projects tracker MEED Projects.
This is already marginally above ...
READ MORE
Governments are looking at decoupling water and power production as well as encouraging private investment to meet rising demand
Meeting the rising demand for water will remain one of the most ...
READ MORE
Recovery sought through commercial flights as region faces losses of $4.8bn
The Middle East’s aviation sector has resumed activity as the region’s largest carriers seek to kickstart recovery amid the Covid-19 ...
READ MORE
Demand for affordable and community-centric homes is driving an uptick in the UAE residential property sector
· Changing consumer behaviour such as demand for community-centric, open spaces is steering buyers towards ...
READ MORE
EXCLUSIVE: Saudi Arabia reveals plans for next round
Dubai seeks consultants for floating solar plant plans
ENERGY CLUB 1: Investing in the future of
Adnoc and ExxonMobil sign R&D agreement
Aramco and Adnoc dominate oil market
Abu Dhabi to tender Borouge 4 in mid-2020
UAE records pick-up in oil and gas contract
New strategies tackle rising water demand
Middle East aviation sector resumes activity
Villas, townhouses drive UAE residential market
23 November, 2017 | .By ANDREW ROSCOE
