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 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
Consolidated Contractors Company (CCC) is developing four new business lines, says president of engineering and construction Samer Khoury
Lebanon’s Consolidated Contractors Company (CCC) is tackling the acute problems facing the region’s construction sector ...
READ MORE
Investors require a concerted display of political will to engage in the hundred billion dollars-worth of planned PPP projects across the region
Sustained low oil prices between 2015 and 2017 drove ...
READ MORE
Kingdom is developing atomic energy with three main programmes
The Saudi cabinet has approved the establishment of the National Project for Atomic Energy.
The project was approved after a presentation to the ...
READ MORE
French firms developed the satellite, platform and optical instrument
The UAE launched on 2 December its FalconEye earth observation satellite from the European Spaceport (CSG) in Kourou, French Guiana by an Arianespace Soyuz ...
READ MORE
Chinese investors and contractors already have an active presence in both markets
A Chinese official has said that Beijing will develop more projects in the UAE and Algeria as it commits ...
READ MORE
The Covid-19 outbreak is expected to have a severe impact on the region’s stellar non-oil economy
In one fell swoop, the spread of the novel coronavirus across the world has laid ...
READ MORE
The client received prequalification entries for PV solar plant earlier this month
Emirates Water & Electricity Company (Ewec) is planning to issue the request for proposals (RFP) for a planned 1.5GW ...
READ MORE
From long-range e-bikes to intelligent bathrooms with future-proof taps, the expo will showcase energy-efficient technological marvels from across the world when it finally opens its doors in October next year
The ...
READ MORE
This is article is the third in a series from the MEED-Mashreq Healthcare Business Leaders Forum held on 23 February in Dubai. The event saw leading industry experts gather to ...
READ MORE
Dubai reviews updated bids for its largest construction
CCC finds strength in diversity as construction market
Finding a regional model for PPP
Riyadh approves nuclear project
UAE launches defence satellite
China to develop more projects in UAE and
Coronavirus crashes down on UAE economy
Abu Dhabi sets target tender date for 1.5GW
Expo 2020 provides launchpad for innovation
Closing the healthcare talent gap
23 November, 2017 | .By ANDREW ROSCOE
