Tag Archive | "China"

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China to Stop Increasing Iraq Oil Orders

By John Lee.

Chinese oil companies are to maintain their purchasing of crude oil from Iraq’s State Oil Marketing Organization (SOMO) at the 2014 level for next year, according to a report from Reuters.

The decision has been attributed to a slowing of demand growth in China, the varying quality of Iraq’s “Basra Light” crude, and Iraq’s failure to deliver the full contracted volumes in 2014.

This is the first time in almost a decade that volumes have not increased year-on-year.

Reuters data shows that China’s crude imports from Iraq rose in the first ten months of the year by nearly a quarter to 23.49 million tonnes — equivalent to 566,387 bpd — compared with the same period of 2014.

(Source: Reuters)

Posted in Oil & GasComments (2)

China to Play Big Role in Iraq Reconstruction

By John Lee.

A former Iraqi official said China would have the opportunity to play a big role in Iraq’s reconstruction when the country is more stable.

Samir Sumaida’ie (Samir Sumaidaie) (pictured), who was Iraqi ambassador to the US from 2006 to 2012, told Xinhua:

Although Iraq is still a fragmented country, sooner or later, it will need to rebuild infrastructure, including roads, hospitals, schools, ports, railway lines, and so on …

“China will have the opportunity to play a big role when Iraq is able to welcome foreign contributions …

“Countries like Iraq should open their arms to every foreign power that is interested in helping it stabilize and rebuild itself.”

He added that he believed China’s proposal to build a Silk Road Economic Belt and the 21st Century Maritime Silk Road would benefit all participating parties.

(Source: Xinhua)

Posted in Construction & Engineering, Industry & TradeComments (0)

China’s First Diplomat Posted to Kurdistan

Chinese Consul General Tan Banglin this week visited the KRG Department of Foreign Relations to present his credentials as his country’s first diplomat posted to Kurdistan, and to discuss areas of cooperation between both sides.

Minister Falah Mustafa warmly welcomed Consul General Banglin and congratulated him on his new post, assuring him of the KRG’s full support for the new Chinese Consulate.

The Minister briefed the Consul General on the latest security and humanitarian developments in the Kurdistan Region and assured him that the KRG is capable of ensuring safety and security in the Region.

Consul General Banglin explained that he is very pleased to have the opportunity to work in the Kurdistan Region, expressing his country’s solidarity with and support for the Kurdistan Region in fighting against the terrorists.

Both sides discussed bilateral relations and areas of potential cooperation, expressing commitment to establish strong cultural, political, and economic ties.

They also discussed the formation of the new Iraqi government and the political process in Iraq. They agreed that the success of the new government would require genuine power sharing and adherence to the Iraqi Constitution.

Minister Mustafa pointed out that the Kurdistan Region attaches great importance to relations with members of the international community, including China, as a major global power.

He noted that China and the KRG should forge a long-term relationship based upon a foundation of mutually beneficial economic interests.

(Source: KRG)

Posted in Industry & TradeComments Off

More Chinese Trains Delivered

By John Lee.

Iraq has received a second shipment of two new trains from China.

Of the ten units ordered, this brings the total delivered to four, with the balance to be delivered by the end of the year.

The total value of the contract is $138 million (161 billion Iraqi dinars).

Chairman of the Ports Committee of Basra Council, Murtaza Shahmani, told the National Iraqi News Agency the trains will join the fleet servicing the Baghdad- Basra route, and will be ready for the start within days.

(Sources: NINA, Basra Council)

Posted in TransportationComments Off

Petrofac Wins $500m Rumaila Contract

By John Lee.

Petrofac has also been awarded a major contract in Iraq to provide general construction management services to BP Iraq NV (BP) on the Rumaila field near Basra.

Petrofac will provide management and personnel to manage brownfield modifications to assist BP – and its partners in the Rumaila Operations Organisation (ROO), China National Petroleum Company (CNPC) and South Oil Company (SOC) – in executing its strategy to rapidly and safely increase production from what is one of the world’s largest fields.

The contract, which runs for three years, with an option for further extension of two years, has a potential value of up to $500 million.

Petrofac will provide the overall management and co-ordination of multiple construction projects, including construction management and supervision of work undertaken by third party contractors on the field, 32 km from the Kuwaiti border.

Mani Rajapathy, Senior Vice President, MENA/CIS, said:

“The award builds on an established track record for Petrofac in Iraq, in particular at Rumaila, dating back to 2011. We look forward to sharing in the continued success of the regeneration of Rumaila.”

(Source: Petrofac)

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China to open Consulate in Erbil

Prime Minister Nechirvan Barzani today received Mr Tan Banglin, envoy from China’s Foreign Ministry appointed to be the first Chinese consul general in the Kurdistan Region.

Mr Banglin said that he was very pleased to visit the Kurdistan Region, stating that he has arrived in the Region during this difficult time to express China’s solidarity and support for Kurdistan and to determine how China can aid the Kurdistan Region in assisting refugees and the displaced.

He added that in the framework of China’s relations with the Kurdistan Region and Iraq, China’s Consulate General in Erbil will be inaugurated in the coming two months and that he will be appointed as his country’s first consul general in the Kurdistan Region. Through opening the consulate Mr Banglin said he will do his best to establish a bridge between China and the Kurdistan Region and will encourage Chinese companies and investors to participate in the reconstruction and economic development of the Region.

Prime Minister Barzani welcomed Mr Banglin to the Kurdistan Region and applauded China’s decision to open a consulate in Erbil and strengthen its ties with the Kurdistan Region. He said the decision is a vote of moral support for the Kurdistan Region at this challenging time, welcoming the step and conveying his full support for the decision to open the consulate.

In the meeting both sides discussed the mutual importance of strengthening bilateral ties in all sectors, especially trade and industry, as well as social and political relations. Both agreed on the need to support the KRG in fighting the terrorist militants.

Once the Chinese Consulate General in Erbil is inaugurated, all five permanent members of the United Nations Security Council will have diplomatic representation in the Kurdistan Region.

(Source: KRG)

Posted in Industry & TradeComments Off

BP, CNPC Increase Stakes in Rumaila

By John Lee.

Reuters reports that a revised contract signed last week by BP and China’s CNPC for the Rumaila oilfield has raised both companies’ stakes in the project.

Thamer Ghadhban (pictured), energy adviser to former Prime Minister Nuri al-Maliki, told the news agency that BP’s share has been increased from 38 percent to 47.6 percent, and CNPC’s from 37 percent to 46.4 percent.

The stake owned by Iraq’s State Oil Marketing Organization (SOMO) was cut from 25 percent to 6 percent.

It was reported earlier this week that output targets for the supergiant field had been reduced, and the contract period extended.

(Source: Reuters)

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Can China Do More For Iraq?

By John Lee.

China expert Simone Van Nieuwenhuizen has written an opinion piece for The Diplomata foreign affairs journal that covers events in Asia. She argues that it would be in China’s interests to do more for Iraq.

In the piece, Van Niewenhuizen notes that not only has China been threatened by the Islamic State of Iraq and the Levant (ISIL) but also supports a UN Resolution condemning terror groups in Iraq and Syria and imports a significant amount of Iraq’s oil.

But despite China’s involvement in investment and reconstruction in Iraq, the Asian giant has so far avoided any counter-terror commitments currently being pursued by both NATO and Russia, among other countries with interests in the Middle East.

Van Nieuwenhuizen argues this situation may soon change if China wishes to safeguard her MENA region interests. Read the full piece here.

(Source: The Diplomat)


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