[lbo-talk] "China have an eye to African, S. American oil"

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[People's Daily Online]

Business

Last updated at: (Beijing Time) Saturday, February 28, 2004

Experts: China have an eye to African, S. American oil

"Take our technologies and capital to Africa and South America and exploit
oil there so as to have diverse oil supply and avert the risk brought about
by concentrated oil imports ."

This is the suggestion strongly proposed by Tan Zhuzhou, chairman of China
Petroleum and Chemical Industry Association, on Feb. 25 when the
decision-making process of the strategy for China's overseas energy is
underway.

This is echoed by the petro-chemical experts advisory team from Shanghai
Zhonghao-Sichao Consultation & Strategies Institute in their report.

In the light of the volatile Middle East situation and China-Russia oil
pipeline overshadowed with uncertainty, domestic energy experts have come to
consensus that highlight should be given to Africa and South America in
China's overseas exploitation for oil from 2004.

" Oil-rich countries in Africa and South America have developed friendly
relationship with China and the trade and economic exchanges between China
and these nations are expanding. Oil rich nations in these regions are
generally less developed and some of them are suffering from long-term
sanctions by the US. Their oil industry is poor. As they have a strong
incentive to export oil for forex to alleviate poverty, they generally offer
favorable terms for their oil export trade. So this gives China
possibilities of spotting new or big oil suppliers. In addition, China
National Petroleum Corporation (CNPC) has had successful experience in
Sudan." This was put forward and verified by Han Wenke, an energy expert, in
a research report of the Micro-Research Institute under the former National
Planning Commission.

Oil giants with their debuts in Africa and South America at the beginning of
the year seem to sing in harmony with oil experts.

In the early February, (CNPC), which puts overseas expansion as its top
mission for 2004, quietly cast its eyes on Africa and signed oil agreements
with Algiers and Egypt. That coincided with the contracts between Sinopec,
which has long had a big stake in the Middle East for its overseas oil
strategy, and a French oil company. In addition, China will import oil from
Gabon.

By People's Daily Online

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