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
Aramco to spend $100bn on refining and chemicals projects
Ultimate target is to reach refining capacity of 8-10 million barrels a day State-energy giant Saudi Aramco plans to spend more than $100bn on new refining and chemicals projects over the ...
READ MORE
BRIEFING PAPER: Broadening Horizons
Oilfield service companies must adapt and innovate to survive in the wake of the Covid-19 pandemic By 7 June 2020, more than 6.6 million worldwide had tested positive for Covid-19 and ...
READ MORE
Energy investment to fall by $400bn
Oil and gas investment to fall by almost a third in 2020 Annual energy investment is set to fall by an historic $400bn in 2020, according to the International Energy Agency’s ...
READ MORE
Adnoc says its $10bn Bab sour gas project is seeing progress
Project has stalled since Shell pulled out in 2016 Abu Dhabi National Oil Company’s (Adnoc's) $10bn Bab sour gas project is seeing progress, according to the company’s chief economist Kamel Ben ...
READ MORE
ENERGY CLUB 4: The outlook for upstream gas strategies
The fourth Mashreq Energy Club discussed the challenges and investment outlook for natural gas in the Middle East and North Africa Few regions invest more consistently in the development of hydrocarbons ...
READ MORE
Kuwait extends oil and gas tenders by three months
Extension is a result of the Covid-19 pandemic Kuwait has extended the bid deadlines for all oil, gas and chemical tenders that are issued through the Central Agency for Public Tenders ...
READ MORE
Opec
A series of events in the final weeks of 2017 provide a strong indication of what we can expect in the year ahead. From an economic perspective, the most significant was ...
READ MORE
Chinese firms set to play a major role in oil and gas development
Having long been prevalent in the Middle East’s civil construction space, contractors from China are now looking to new sectors In mid-July, the UAE hosted an official state visit by Chinese ...
READ MORE
Adnoc
As oil production cuts boost confidence in the energy sector, Abu Dhabi National Oil Company (Adnoc) is pushing ahead with bullish plans to expand its refining capabilities, add value to ...
READ MORE
Opec recognises concept of peak oil demand
Amid a decline in global oil demand due to the Covid-19 pandemic, Opec has, for the first time, placed a date on the likely point of peak oil demand On 13 ...
READ MORE
Aramco to spend $100bn on refining and chemicals
BRIEFING PAPER: Broadening Horizons
Energy investment to fall by $400bn
Adnoc says its $10bn Bab sour gas project
ENERGY CLUB 4: The outlook for upstream gas
Kuwait extends oil and gas tenders by three
Opec strategy pays off
Chinese firms set to play a major role
Adnoc eyes diversified growth
Opec recognises concept of peak oil demand
23 November, 2017 | .By ANDREW ROSCOE