China’s Expanding Petroleum Ties with Sudan

Noticed this article in the Wall Street Journal a few weeks back detailing China’s growing energy-related relationship with Sudan. Interestingly, Sudan is identified as being among Beijing’s major oil suppliers (having sent China 4.7 million metric tons of crude in the first five months of this year, a fivefold increase over the same period of 2006).

“….China National Petroleum Corp. and Indonesia’s state-run oil and gas company, PT Pertamina, will explore Sudan’s offshore oil block 13, a Pertamina executive said yesterday, confirming an earlier report in the China Petroleum Daily. The Chinese newspaper, published by China National Petroleum, said the companies signed a 20-year concession agreement last month with Sudan’s government that includes sharing future oil production from the offshore block….

Pertamina Vice President Iin Arifin Takhyan said the Indonesian company has a 15% interest in block 13, and is cooperating with China National Petroleum and three other partners. The group will invest about $25 million during the first three years of exploration. A spokesman for China National Petroleum couldn’t be reached for comment.”

Of course, with its problems in Darfur, Sudan is much maligned internationally at present (for good reason), but China certainly seems to be taking advantage of Sudan’s negative status to lock in some potentially valuable petroleum concessions for the future.

 

 



This entry was posted on Monday, July 23rd, 2007 at 2:28 pm and is filed under China, China National Petroleum Corporation, Indonesia, PT Pertamina, Sudan.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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