Oil | Chinafrica - China Africa trade, China investment in Africa

mars 2010
L	Ma	Me	J	V	S	D
« fév
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

China’s CNOOC Eyes Big Deal In Africa

Lundi, février 22nd, 2010

China National Offshore Oil Corp may pay up to $2.5 billion for Ugandan assets owned by Heritage Oil Plc, reported Monday’s Reuters.

The sale process for the oil fields, which executives say contain around 2 billion barrels of oil, has been a competitive process between British, Italian and Chinese oil majors.

On Friday, Italy’s Eni SpA pulled out of a planned $1.5 billion purchase of Heritage Oil’s 50 percent share of Ugandan Blocks 1 and 3A — in which London-listed Tullow Oil Plc has preemption rights.

Tullow and Heritage control three oil blocks that cover the Ugandan side of Lake Albert, but the explorers lack the resources to develop the project alone.

Tullow has said it wants to sell the Heritage assets on to CNOOC.

Heritage Oil said on Monday it will receive $1.35 billion on completion of the sale of its Ugandan assets.

CNOOC said last week it aims to produce 275-290 million barrels of oil and gas equivalent (boe) this year, up from an estimated 226-228 million boe in 2009.

Tags: Africa, China, CNOOC, oil, Uganda
Posted in Non classé | No Comments »

Ecuador, China To Create Oil Joint Venture

Lundi, novembre 30th, 2009

Ecuador and China will form a joint venture to develop an oil bloc in the South American country that has proven reserves of 120 million barrels of crude, an Ecuadoran official said Wednesday, reported AFP.

Germanico Pinto, the minister of non-renewable natural resources, announced the creation of a joint venture between Ecuador’s state-owned Petroecuador and China’s Sinopec International Petroleum at a meeting in Quito with about 20 Chinese business representatives, said a statement. Pinto said the new company will seek an investment of one billion dollars to « explore and exploit » Bloc 42 in the eastern part of the Andean country. Petroecuador was to hold a 60 percent stake in the joint venture, and Sinopec the remaining 40 percent. Ecuador is OPEC’s smallest-producing member, pumping out 500,000 barrels of crude a day. On Tuesday Ecuador and China signed three cooperation agreements worth 442 million dollars and Quito obtained credit to buy four warplanes, officials said. Beijing’s direct investment in Ecuador has reached 2.2 billion dollars, making it one of the top targets of Chinese investment in Latin America. Trade between the two countries reached 2.4 billion dollars in 2008, a 50 percent increase from the previous year.

Konaxis

Tags: Ecuador, oil, Sinopec
Posted in Non classé | No Comments »

China Plans Emergency Oil-Storage Tanks In Northeast

Lundi, novembre 2nd, 2009

China, the world’s second-biggest energy consumer, plans to build emergency oil-storage tanks in the northeast to help bolster fuel-supply security, reported Bloomberg.

The tanks are part of the second phase of China’s construction of emergency oil stockpiles, said Zhang Guobao, the chief of the National Energy Administration.

China will set up oil reserves equivalent to 100 days of net imports before 2020 to avoid supply disruptions, China Petrochemical Corp., the nation’s top refiner, said in a company newsletter on Sept. 23, citing a plan approved by the State Council. The stockpiles will be built in three stages, according to the state-run company.

Construction of the second phase has started with the Dushanzi facility in the western province of Xinjiang, Zhang said last month.

Under the first phase, China has finished building reserves equivalent to about 30 days of net imports, the energy administration said in June.

The International Energy Agency, adviser to 28 oil-consuming nations, recommends its member countries to maintain a stockpile level of 90 days of net oil imports.

Source : Konaxis

Tags: China, energy, oil, tank
Posted in Non classé | No Comments »

Guinea Signs $7bln Deal With China

Vendredi, octobre 30th, 2009

The junta-backed government of Guinea has signed a seven-billion-dollar mining and oil partnership deal with the China International Fund (CIF), Guinea’s mining minister said Thursday, reported AFP.

While the majority of Guineans live in abject poverty, the west African country has vast mineral resources. It is the world’s biggest exporter of bauxite, used to make aluminium, and has important iron, gold and uranium reserves.

The investment will be mainly in infrastructure projects including hydroelectric dams, roads, railways, social housing, power plants, water infrastructure, schools and hospitals, said mining minister Mahmoud Thiam.

« In exchange (the CIF) will become our strategic partner in a mining project that will start with setting up a national mining company in Guinea (…) where all the state’s interests in mining projects will be housed ».

The signing of the deal comes at a time when Guinea’s junta is coming under increasing international pressure over the massacre of over 150 anti-junta protesters by the army on September 28.

Source : Chinafrica

Tags: China, Guinea, mining, oil
Posted in Non classé | No Comments »

China’s CNPC Emerges Winner of Engineering Contracts In Sudan

Mercredi, octobre 14th, 2009

The China National Petroleum Corporation claims that one of its subsidiary companies, China Petroleum Engineering Construction Corporation (CPECC) has emerged the winner out of 13 bidders for 7 engineering contracts in Sudan. India was one of the bidders and a close competitor. Sudan holds the fifth largest crude oil reserves in the African continent. CNPC is the largest oil producer in China, and stated that in September, one of its units was selected for a $260 million contract for engineering and construction for an area called Block 6, an oil block.

CNPC is also the parent company of PetroChina, a company listed in Hong Kong. It has been granted a $30 billion loan meant for funding overseas expansion projects in its persistent search for oil and energy sources beyond Chinese territory. CNPC is also responsible for the development of the first oilfield in Sudan. The present contracts are for various projects, including the expansion of a power plant, the CPF station expansion assignment, the construction of two 50,000 cubic meter crude oil tanks, the FNE Flow station, the Jake Flow station, the installation of a power grid system and oil well development. CPECC has already initiated the process of designing and making purchases of raw materials. According to the statistics released by the U.S. Energy Information Administration, till January, Sudan’s oil reserves stood proven at five billion barrels. Most of the reserves are found in the Melut and Muglad basins in the southern part of Sudan.

Chinese companies enjoy a distinct advantage over others for securing infrastructure contracts due to the strong ties between Africa and China. China has risen to be the largest foreign investor in Sudan by substituting for U.S. interests in the country. With its own consumption of 8 million barrels per day according to 2008 figures, it needs to ensure a continuous supply of oil, the natural resources for which it does not have. Hence the dependence on countries like Sudan. In exchange, it is willing to pump in millions into infrastructure development and other avenues for the growth of Sudan.

Source : Business in Africa

Tags: CNPC, CPECC, oil, power plant, Sudan
Posted in Non classé | No Comments »

All of China’s Oil Deals In Africa Not Smooth Sailing

Mercredi, octobre 7th, 2009

African countries have had China’s participation in oil exploration operations for the last five years. But all is not well and China’s recent acquisition efforts have been running into difficulties. While some are facing vetoes there are others that have reached advanced stages of negotiation. For instance, in Nigeria, China’s state owned China National Offshore Oil Corp. (Cnooc) has reached advanced stages in talks about taking over blocks of oil exploration that are underutilized though owned by the Royal Dutch Shell and other companies. This was announced by Nigeria’s oil minister and a presidential spokesman. About 20 onshore blocks were at stake and the likely investment would be to the tune of several billion dollars.

This is sharp contrast to the fate of late stage negotiations of Chinese companies in Angola and Libya. In Libya, the bid of $462 million by China national Petroleum Corp for Verenex Energy Inc. Close on its heels was Angola’s state owned Sonangol wanting to stop Marathon Oil Corp.’s 20% stake in the oil fields to China’s Cnooc and Sinopec. The latter’s stand is the extreme opposite of the reception and preference Chinese companies received in Angola half a decade ago. Angola became China’s largest oil supplier in 2008 and Sino-African trade touched $106.8 billion.

The possible explanation for things coming to such a pass can be found in China’s grip too tight for Africa to handle. Moreover China has kept local recruitment levels low and has done little to increase employment opportunities or train the locals in their projects. Their policy of oil for infrastructure was welcomed initially but is now being spurned. The China Africa relationship is gradually maturing and as Africa moves higher up on the development ladder, it is being selective about its path. China is no longer the only country willing to pump in millions into Africa’s infrastructure. Western banks are again lapping up investment opportunities and fund requirements of African companies. The U.S. is also increasing its investment in oil and agriculture. Thus Africa’s need for China is gradually falling.

Source : Business Africa

Tags: Africa, Angola, China, Lybia, Nigeria, oil
Posted in Non classé | No Comments »

China’s Largest African Trading Partner-Angola

Lundi, octobre 5th, 2009

Angola emerged as China’s largest trading partner in Africa in 2008 with bilateral trade amounting to $25.3 billion during the financial year. This was stated by the Chinese ambassador to Angola, Zhang Bolun in Luanda two days ago.

Both countries are under pressure due to the global financial crisis, but despite all odds, trade between the two nations has been consistently increasing, he said. More private investors would be coming in to Angola in the coming year. These would include contractors interested in agricultural opportunities open in Angola, the food industry, timber processing and also information technology. China had earlier promised to send agro-technicians for agricultural revival in Angola where agricultural production had been stagnant through the years of armed conflicts in the country. Timber processing would be beneficial as well since Angola has rich forests with good quality timber procurable for furniture and other woodwork.

Oil forms the largest chunk of the Chinese imports from Angola, amounting to 16% of the total. It also happens to be the African country giving the maximum amount of oil to China to meet its ever-increasing needs. Angola is Africa’s largest oil producer, though the last month saw its oil production dip as compared to the previous month.

Angola accounts for 24% of the total China-Africa trade, and with more investors coming in from China, it is likely to increase further. China, in turn, is helping Angola in infrastructure development by building roads and railways, hospitals and schools, free markets and housing. All these are aimed at improving the living standards of the local people and hasten the process of the country’s reconstruction. Cooperation in other sectors is also on the anvil.

Source : Business China

Tags: agriculture, Angola, China, oil, trade
Posted in Non classé | No Comments »

China Commences Oil Line Work In Chad

Mercredi, juillet 15th, 2009

China is making headway in some African country or the other every single day, securing mining rights, signing agreements for resource exploration, forming strategic partnerships and so on. There is no doubt about the strong position China has in the African continent, and its money power along with its interest in Africa has made Africans turn to it for help, support, aid and development. China in turn has been consistently trying to secure its supply of energy and minerals crucial for its own development. With all its investments and funding of infrastructure development in African countries it is now the most preferred customer for African oil and other natural resources available in abundance.

The latest in the series of China’s African operations is the commencement of work on an important pipeline in the southwestern part of Chad. The pipeline is being laid by the largest energy producer of China, CNPC or China National Petroleum Corporation, and will begin functioning on completion in 2011. The pipeline is expected to transport crude oil from the Koudalwa oil field to the Djarmaya refinery located in the capital city of N’Djamena.

The pipeline is a big step for Chad since the oil produce and exported would help fund developmental projects in the country. While the exact cost of the project is not disclosed, it is likely to cost hundreds of thousands of dollars. Chinese presence in Chad is six years old and it has helped Chad in major projects.

China is being increasingly perceived as an oil hungry country securing supplies of this scarce source of energy from anywhere and everywhere. With all its cash reserves it is investing in the source on which it can exercise control and not be dependent on external agencies. With resources in place, China is set to accelerate its pace of growth even further.

China’s diplomatic relations with Chad were also reestablished in 2003. Since then, China has been participating in a wide array of projects in Chad. These included construction of governmental buildings, water and power supply sources, medical aid including essential medicines, educational projects and so on.

Source : China Africa

Tags: Chad, China, oil
Posted in Non classé | No Comments »

China Strengthens Its Hold Over African Oil

Mercredi, juillet 8th, 2009

China consistent endeavors to secure its supply and sources of natural resources and minerals has seen strategic moves for mergers and acquisitions, including bids for companies that operate in Africa. In keeping with this strategy, China’s oil giant Sinopec, a company fully owned by the Chinese government, has made a $7.22 bid to takeover Addax Petroleum. Addax has oil fields off the West African coast, and this would give China access to the oil produced in these fields. This would be over and above what China gets from Gabon and Sudan. Addax seems pleased with the takeover bid with its senior officials agreeing to sell their 38% stake that they hold in the company.

Addax is a Switzerland based company though it is registered in Canada. Canadian rules require government approval of large acquisitions, though it is not yet clear whether it is required for the Sinopec bid.

Addax has a time period of 35 days to accept the bid after which Sinopec will get charge of the African oil fields. Sinopec is using every opportunity to grab companies involved in exploring oil and China in general for other natural resources crucial for its growth and development to scale greater heights. Some of Sinopec’s previous attempts were foiled by political impediments, but it has been patiently waiting in the wings while stacking up its earnings to have considerable amount of cash to fund deals. These deals are also transforming Sinopec into a truly global company which will no longer be confined to refining oil, but have direct access to sources of oil overseas.

Addax oilfields include operations in Nigeria where militants pose a constant threat to oil drilling operations, but Sinopec has perhaps already figured out ways of operating in such risky places. The deal is particularly attractive since it is going to be the biggest acquisition of natural resources by any Chinese company. China also seems to be the only country with cash to spare and willing to make cash down payments for its acquisitions. Cash strapped companies desperate for an inflow of cash, need just that.

Source : China Africa

Tags: Addax Petroleum, Gabon, Nigeria, oil, Sinopec, Sudan
Posted in Non classé | No Comments »

China And the U.S. Both Look at Ghana

Mercredi, juin 24th, 2009

Africa has been known for centuries as a poor continent and almost every picture of Africa has depicted abject poverty and hunger stricken sad faces of men, women and children. Yet there is now a crazy scramble for all that Africa has to offer, namely rich mineral resources and supplies of oil and energy. The US and China are both trying to woo African countries to ensure a smooth supply of oil. China was way behind in the development race but has caught up at an amazing pace to be a close second in terms of industrial growth and has begun to wield a considerable amount of influence globally. As the second largest producer of oil after the United States, it needs the oil resources just as much. The figures reveal that China got 9% of African oil exports in 2006 as compared to US getting 33%. The US gets double the oil that China gets from Angola, the second largest oil producer in Africa. However, China’s investment and assistance to Angola for the development of its infrastructure far outweighs what Angola gets from USA.

It has literally become a race for African favors in terms of resource supplies between China and the US. China is aggressively pursuing its investment and aid commitments towards Africa, accommodating its requests and pitching in whenever African leaders turn to it for support. It has cancelled African debt to the tune of $10 billion and has made a significant contribution to the growth rate witnessed by many African economies. The US has not yet displayed the same fervor.

The newest country to attract the interest of both China and US is Ghana. Both countries have been involved in oil exploration and large infrastructure projects linked to the energy sector. The US has a major stake in the West African Pipeline, and the project involves a sum of $ 700 million. China has funded the Bui Dam project by providing $600 million for generating 400MW of electricity that will benefit the local Ghana population.

Ghana is at the center of focus for both China and the US. It could benefit tremendously by this and pursue its agenda for development by keeping up the interest of both countries.