China strengthens role in region’s energy sector

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
Petrochemicals sector poised for expansion
Major petrochemicals producers have been making considerable capital investments in setting up derivatives complexes The Middle East and North Africa (Mena) region is set to witness a gathering of pace in ...
READ MORE
Abu Dhabi to move into new phase of gas development
Adnoc plans to develop additional sour gas resources primarily from the offshore Ghasha concession Abu Dhabi National Oil Company (Adnoc) is poised to enter the design phase of its greenfield deep ...
READ MORE
Three firms tie for title of top EPC contractor
Total value of deals secured by top 10 contractors down 40 per cent from last year The UK’s Petrofac, Italy’s Saipem, and Japan’s JGC Corporation have tied for the title of ...
READ MORE
Egypt upstream gas exploration gathers speed
Rising output from the mammoth Zohr gas field, coupled with ambitions to augment its reserves, have helped Cairo regain its gas exporter status after a five-year hiatus Italian energy major Eni’s ...
READ MORE
Abu Dhabi considering $20bn investment in offshore sour gas
State oil company targeting five offshore and three onshore fields for high-sulphur gas capacity expansions Abu Dhabi National Oil Company (Adnoc) is considering the investment of $20bn in developing sour gas ...
READ MORE
Construction
Downturn ultimately will make companies in the region stronger, says Al-Ghurair The CEO of the UAE’s biggest private bank has warned businesses in the region that the current low oil prices ...
READ MORE
Navigating the minefield of Middle East markets
Rising oil prices mean the region will continue to be a key export market September marks the start of a fresh business season in the Middle East, and the region remains ...
READ MORE
Adnoc
Abu Dhabi’s Supreme Petroleum Council (SPC) has approved plans by Abu Dhabi National Oil Company (Adnoc) for a capital expenditure of more than AED400bn ($108bn) over the next five years, as it moves to ...
READ MORE
Ten Minutes into the Future of Energy
UAE Minister of Energy and Industry, Suhail al Mazrouei   The ‘Ten minutes into the Future of Energy’ initiative, produced by MEED and powered by Mashreq, aims to explain and highlight the ...
READ MORE
Adco ready to sign Bab expansion contract
The state-backed Abu Dhabi Company for Onshore Petroleum Operations (Adco) is ready to sign the contract for the Bab Integrated Facilities Project Expansion, one of the largest planned oil and ...
READ MORE
Petrochemicals sector poised for expansion
Abu Dhabi to move into new phase of
Three firms tie for title of top EPC
Egypt upstream gas exploration gathers speed
Abu Dhabi considering $20bn investment in offshore sour
EXCLUSIVE: Low oil prices are here to stay,
Navigating the minefield of Middle East markets
Adnoc breaks down $109bn five-year project plan
Ten Minutes into the Future of Energy
Adco ready to sign Bab expansion contract
23 November, 2017 | .By ANDREW ROSCOE