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
Abu Dhabi offers six oil and gas blocks in first ever licensing round
State oil giant Adnoc announces details of four onshore and two offshore blocks in which it will hold majority 60 per cent stake The Abu Dhabi National Oil Company (Adnoc) has ...
READ MORE
Coronavirus executive briefing (24 June)
Understand the Covid-19 outbreak, its impact on the global and regional economy, and initial implications for specific sectors Click here to download the full document
READ MORE
Oil rig
Project is estimated to be worth $500m-$600m International contractors have submitted technical bids for the engineering, procurement and construction (EPC) contract for the second phase of the Qusahwira oil field development, ...
READ MORE
Saudi Aramco tightens capital expenditure
Aramco’s supply chain community is trying to assess the impact of subdued capital spending in 2020 on their businesses Most analysts had predicted Saudi Aramco would register lower profits in 2019 than the ...
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
States deliberate on stranded South Asian workers
The UAE's offer to repatriate expatriates has not been taken up by India Discussions are under way to repatriate foreign workers, including Indian and Pakistani nationals, from the UAE as the ...
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
ENERGY CLUB 1: Investing in the future of Middle East energy
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
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
Adnoc exemplifies gains from asset divestment
The recent agreement to sell a minority stake in its gas pipelines business represents one of the largest global energy infrastructure transactions By raising $10.1bn from a 49 per cent divestment ...
READ MORE
Abu Dhabi offers six oil and gas blocks
Coronavirus executive briefing (24 June)
Contractors submit bids on Abu Dhabi oil development
Saudi Aramco tightens capital expenditure
Abu Dhabi to move into new phase of
States deliberate on stranded South Asian workers
EXCLUSIVE: Low oil prices are here to stay,
ENERGY CLUB 1: Investing in the future of
Aramco to spend $100bn on refining and chemicals
Adnoc exemplifies gains from asset divestment
23 November, 2017 | .By ANDREW ROSCOE