China’s CNPC, Sudan sign deal for new offshore oil block
July 2, 2007 (SHANGHAI) — China’s No. 1 oil company, CNPC, has signed an agreement with the Sudanese government to prospect for oil and gas in northern territory. CNPC and Indonesia’s PT Pertamina will co-develop the offshore oil block, ignoring international efforts to isolate Sudan because of the crisis in its Darfur region, a report said Monday.
The agreement, signed Thursday in Sudan’s capital Khartoum, calls for a six-year exploration phase and shared future oil production under a 20-year concession, the CNPC-backed China Petroleum Daily newspaper reported.
Under the agreement, CNPC would have exploration rights to 13 oil blocks located in the northern coast of the Red Sea. The fields have a total acreage of about 3.8 square kilometres, China Petroleum Daily reported.
Sudan is among Beijing’s key oil suppliers. It shipped 4.7 million tonnes of crude oil to China in January-May, a fivefold increase over the same period in 2006.
CNPC, a leading energy investor in Sudan and parent of oil and gas firm PetroChina <0857.HK>
China now produces roughly 226,000 barrels of oil every day from three oil fields in Sudan, or about 3 percent of China’s demand.
Human rights activists have accused China of shielding Sudan from pressure over its handling of Darfur. As one of the five UN Security Council permanent members with veto power, China has opposed harsh measures against Sudan.
China’s special envoy on Darfur, Liu Guijin, said late last month Beijing was doing its best to help solve the conflict.
Fighting has killed more than 200,000 people and made 2.5 million refugees in Darfur since 2003, when rebels took up arms against Sudan’s government.
CNPC, parent company of Hong Kong and New York City-listed PetroChina Co., meanwhile, is facing international pressure from foreign investors to reduce its involvement in Sudan.
(AP/Reuters)