Chinese and Russian oil companies signed several deals during the recent Asia Pacific Economic Cooperation annual meeting in Beijing, indicating that the two countries have entered a honeymoon period in the area of energy cooperation, Guangzhou’s 21st Century Business Herald reports.
China National Petroleum Corp (CNPC) signed framework deals with Russian oil company Rosneft and gas supplier Gazprom Nov. 9 for buying a stake in an oilfield in Russia and in gas supplies.
The deals came as Moscow saw a further drop in oil prices and in its currency, the rouble, since July, which has hurt the Russian economy, the newspaper noted. Continue reading
We have previously profiled the “holy grail” gas deal between Russia and China on several occasions, and noted last week how it is expected to be signed this week – pending some final price negotiations. It appears that was spot on as Reuters reports, Russian state-run Gazprom said it was still “one digit” away from finalising a 30-year gas supply deal with Beijing which is expected to crown Russian President Vladimir Putin’s visit to China next week. On the heels of Russia’s de-dollarization meetings, the coming week appears a crucial one for the history books of the US Dollar as reserve currency (or will China leverage Russia’s need to diversify from Europe and stall the deal once again?) Continue reading
China has offered Sri Lanka new loans for infrastructure projects, worth US$ 2.2 billion dollars. In a reply to a question, the Chinese Foreign Ministry spokesperson, Mr. Hong Lei told the news media that in addition to infrastructure loans, both countries agreed to further deepen defence cooperation and maintain exchanges between two defence ministries, whilst they continue to carry out in cooperating defence technology, personal training and other fields. Yet, the spokesperson did not reveal further details regarding the nature of the new strategic cooperation.
Sri Lankan External Affairs Minister Professor G. L. Peiris, mentioned in an interview with Global Times that, Sri Lanka will embrace China’s rise and characterised bilateral ties as “very warm and mutually supportive”. He also mentioned that China has “stood the test of time”, referring to the military support the country extended during the last phase of the war against the LTTE, as well as the support given to Sri Lanka against a US-backed resolution at the UN Human Rights Council in Geneva. Continue reading
Russia’s decision to give China a share of prized Arctic exploration licenses as part of a “breakthrough” deal signals how the world’s largest oil and gas producer and the biggest energy consumer are redrawing the global energy map.
Under agreements signed during President Xi Jinping’s first state trip abroad, China may double oil imports from state-run OAO Rosneft (ROSN) to more than 620,000 barrels a day, challenging Germany as the biggest buyer of Russian crude. The two also plan to sign an agreement this year to build a pipeline to ship Russian gas to China. Continue reading
In a surprising (if not quite shocking) move, late on Friday Canada blocked Petroliam Nasional Bhd.’s C$5.2 billion takeover of Progress Energy Resources Corp. saying the bid by the Malaysian state-owned company “wasn’t in Canada’s national interests.” As BusinessWeek explains, “in what investors say is a test case for the $15.1 billion bid by CNOOC Ltd. of China for Calgary-based Nexen Inc., the Canadian government said it “was not satisfied that the proposed investment is likely to be of net benefit to Canada,” according to an Oct. 19 statement from Industry Minister Christian Paradis.” While it is unclear precisely what would be of “net benefit to Canada” what is certain is that the Progress Energy move will crush investor spirits who in recent months have expected a flurry of foreign bids coming for local energy names, only to be left at the altar courtesy of government intervention. Continue reading