China signs $50 billion U.S. dollars in oil projects this month

"Meanwhile, Here Are 20 Signs That China Is Cornering The Global Oil Market

Gus Lubin and Gregory White | May 28, 2010, 9:54 AM


Image: The Globe And Mail

In response to the BP's Deepwater Horizon disaster, President Obama has launched a 6 month moratorium on new deepwater exploration contracts and other oil drilling restrictions.

But China isn't stopping.

Just this month, state-owned Chinese companies have signed contracts worth over $50 billion in Canada, Brazil, Argentina, Iraq, Venezuela, and Nigeria.

Most deal include an export clause, locking down energy supplies for the growing Chinese economy. If America's demand ever increases, these deals would present a serious problem.

And Beijing has no qualms about offshore drilling."

$1.3 billion to buy 45% percent of an Alberta project

Deal signed May 2010: China Investment Corp. paid $817 million to take a 45% share of a Penn West Energy Trust project, worth up to 50,000 barrels per day. They also paid $435 million for a 5% stake of Penn West, according to Globe And Mail.

Background: Canada has the world's second largest oil reserves, with relatively minuscule production. It needs foreign capital to fund major new developments in the Alberta Oil Sands, which include shale oil projects.

$1.9 billion to buy 60% of more Alberta projects

Deal signed August 2009: Petrochina paid $1.9 billion for a 60% stake in two properties held by Athabasca Oil Sands Corp, according to Globe And Mail.

Background: Canada has the world's second largest oil reserves, with relatively minuscule production. It needs foreign capital to fund major new developments in the Alberta Oil Sands, which include shale oil projects.

$3 billion to secure a long term oil shipments from Angola to China

Deal signed 2006: Chinese state owned Eximbank provided a loan $3 billion to Angola, and agreed to receive a steady flow of oil from the country in return.

Background: Because of the flow of Chinese funding into the country, Angola has doubled government spending to $25 billion and has been able to fore go IMF support.

$3 billion to develop a Turkmenistan gas field

Deal completed June 2009: China loaned Turkmenistan $3 billion to develop its South Yolotan natural gas field, with various export guarantees. In a separate deal, Turkmenistan opened a new gas pipeline between themselves and China, which will deliver 40 billion cubic meters of gas per year by 2013.

Background: This amount is now more than half of China's yearly demand, which is only set to rise. China is now the key buyer in the region, rather than Russia.

$3 billion investment in an offshore Brazilian oil field

Deal signed May 2010: Chinese state company Sinochem is buying 40% of the offshore Peregrino oil field for $3.07 billion. Statoil, the Brazilian energy company, will be beneficiary of the 40% purchase.

Background: Statoil is set to see a large cut in the oil it bring to market in the future for this up front fee. The field is set to start producing results by 2011.

$3 billion for a 40% percent stake in an Argentine oil company

Deal completed May 2010: China National Offshore Oil Corp will pay $3 billion to buy Argentina's Bridas Group, giving it a 40 percent stake in Pan American Energy LLC, according to Business Week.

Background: China's new company owns 23 oil and gas production blocks in Argentina and Bolivia, and it may claim more through off-shore exploration. Argentina has failed to explore much of its long coastline and has relatively low production, according to NYT.

$4.65 billion to buy 9% of a major Alberta project

Deal signed April 2010: Sinopec paid $4.65 billion for a 9 percent stake in Syncrude Canada, according to Globe And Mail.

Background: Syncrude is the world's largest producer crude from oil sands, and positioned to lead development of the Canada's Oil Sands.

$4.9 billion to buy a Kazakh oil company and build a pipeline back to China

Deal signed in 2005: China National Petroleum Corp. purchased the oil company Petrokazakhstan for $4.18 billion, but didn't stop there. The Chinese then built a $700 million oil pipeline to carry the product from Kazakhstan to China.

Background: The deal hasn't been so clear cut in the end for China, as they were forced to sell back a third of the project to the Kazak government. China has continued to invest in Kazakhstan, however, and also purchased Nations Energy for $1.9 billion in 2006.

$10 billion to fund offshore exploration in Brazil

Deal signed February 2009: China Development Bank loaned $10 billion to Petrobras to fund exploration. In related deals, Petrobras guaranteed to export over 200,000 barrels each day to China.

Background: The deal furthers relations between Brazil and its biggest trade partner. It may pay off this year as Petrobras considers selling offshore blocks to Sinopec for cash.

Brazil has the 15th-largest oil reserves in the world. The recently discovered Tupi field could boost reserves much higher.

$15 billion to improve Iraq's Rumaila oil field (plus a drilling contract)

Deal signed October 2009: China National Petroleum Corp partnered with BP to drill Iraq's mega Rumaila field. They will charge $2 per barrel to produce 100,000 barrels a day. CNPC will also pay $15 billion in infrastructure improvements, according to Arabian Business.

Background: China ar greed to write off Iraq's Saddam Hussein era debts by 80% earlier this year in an effort to smooth ties between the two countries. Now China is snapping up tons of Iraqi fields. Protecting the Rumaila field was the purported reason for Saddam's Hussein's attack on Kuwait in the first Gulf War.

Majority ownership in a dirt-cheap contract to drill Iraq's Halfaya oil field

Deal signed January 2010: PetroChina announced a 37.5% stake in a development of Iraq's Halfaya oil field. The oil field holds reserves of around 4.1 billion barrels, which PetroChina will produce at a cost of less than $1.75 per barrel.

Background: China ar greed to write off Iraq's Saddam Hussein era debts by 80% earlier this year in an effort to smooth ties between the two countries. Now China is snapping up tons of Iraqi fields.

Majority ownership in a contract to drill Iraq's lucrative Missan field

Deal signed May 2010: China National Offshore Oil Corp partnered with a Turkish company to develop Iraq's Missan field for 20 years. The syndicate beat all contenders with a bid to produce at $2.30 per barrel.

Background: China agreed to write off Iraq's Saddam Hussein era debts by 80% earlier this year in an effort to smooth ties between the two countries. Now China is snapping up tons of Iraqi fields.

A $20 billion investment into the Sudanese oil industry

Deals signed over the last decade: China's investment in Sudanese oil is not very public, considering the nature of Sudan's government. Some reports have total Chinese investment at $20 billion, and that doesn't even include the shipment of arms to the country.

Background: China's relationship with Sudan is often criticized due to the violent nature of the regime, and the Darfur conflict.

$20 billion to develop the Orinoco Belt in Venezuela

Deal signed May 2010: China National Petroleum Corporation loaned $20 billion to PDVSA for development that will yield nearly three billion barrels of oil. PDVSA will repay the loan with oil.

In a side deal, China agreed to build three thermal power plants, according to The National.

Background: Venezuela has the 6th-largest oil reserves and relatively low production. The notoriously-inefficient state-owned industry is becoming more open to international investment.

$23 billion to build three refineries in Nigeria

Deal signed May 2010: China State Construction Engineering Corporation will pay $23 billion to fund refineries that can produce 750,000 barrels per day.

Background: The real payoff to this deal comes later in the year when Nigeria auctions drilling contracts on offshore fields. The government will only give contracts to parties that invest in local infrastructure and economy, according to WSJ.

Nigeria has the world's 10th-largest oil reserves, with relatively low production.

$25 billion to transport oil from Siberia to China

Deal signed February 2009: China has provided a $25 billion loan to Rosneft and Transneft, two Russian oil transport and pipeline companies. This loan is to provide the shipment of oil over a 20 year period from Russia to China.

Background: The oil is being shipped from the East Siberian oil fields of Russia, and will amount to an estimated 241,000 barrels a day. It is a move to reduce China's dependence on Middle East oil and expand their regional activities.



$25 billion to fund two major Russian oil companies

Deal signed February 2009: China boosted its Russian oil investments by lending $25 billion to two Russian oil giants, Rosneft and Transneft, with the result being 15 million metric tons going to China a year.

Background: The deal represents 10% of China's yearly oil imports in 2009 numbers. A new pipeline between the two countries is set to begin operation before the year's end.

$41 billion to produce LNG off the coast of Australia

Deal signed August 2009: China National Offshore Oil Corp. paid $41 billion for rights on liquefied natural gas from Queensland, Australia for the next 20 years. The deal will result in 3.6 million metric tons of LNG being transported to China every year.

Background: The deal was hailed as the largest trade deal in Australian history. The resource-rich country is eager to increase trade with China, even as the Chinese controversially jailed Australian employees of Rio Tinto.

Over $70 billion in natural gas and oil investments in Iran

Deal signed October 2004: Sinopec, the Chinese state oil company, signed a $70 billion deal with Iran for liquefied natural gas. The deal sees 250 million tons of LNG head to China over 30 years for the development of the Yadavaran area.

Background: China continues to pursue oil and gas deals with Iran, with the U.S. government increasingly upset over these actions. As of 2009, China was considering another $43 billion in investment in the country.

China's/World´s 1st deep sea water crude oil rig, storage platform





"World´s 1st deep sea water crude oil rig, storage platform unveiled

By smile Updated:2009-06-30 00:52:54

The Sevan Driller, the world´s first cylinder-shaped deep sea water crude oil rig and bulky storage platform, which is constructed by the Nantong Shipyard under China Ocean Shipping (Group) Company (COSCO), is unveiled during a launching ceremony in Nantong City, east China´s Jiangsu Province, June 28, 2009. The rig boasts a capacity of drilling of wells up to 40,000 feet in water depths of up to 12,500 feet, a variable deckload of more than 15,000 metric tons and high storage capacity of bulk materials."

China's 300,000 ton oil supertanker



"China's largest oil tanker delivered in Guangzhou
(chinadaily.com.cn)
Updated: 2010-01-23 10:36

Xin Pu Yang, the most sophisticated supertanker ever designed and built by a Chinese shipyard, docks at Guangzhou, South China's Guangdong province, January 22, 2010. The ship was delivered to its buyer China Shipping(Croup) Company on Friday at Nansha port in Guangzhou. It marks a milestone that the tonnage of China's oil tanks finally breaks through 300,000 tons. [Photo/Xinhua]"








A photo taken on January 22, 2010 shows the cockpit of Xin Pu Yang, the most sophisticated supertanker ever designed and built by a Chinese shipyard at Nansha port, Guangzhou, south China's Guangdong province. [Photo/Xinhua]

Martin you are making it hard for me. Yesterday I reposted my instruction about hotlinking photos..Don't do it. All the photos you have posted are hot linked..Soon they shall be gone,

ALL MEMBERS!! DO NOT HOT LINK! IT EATS UP BANDWIDTH!!

http://www.sinodefenceforum.com/announcements/do-not-hot-link-your-posted-photos-4672.html

bd popeye super moderator

Click on newslinks to see pictures

Let's try another way. To see the amazing pictures of China's $50 billion dollar oil projects for this month and also for the last few years, please do the following:

1) Click on this link:

2) About half-a-page below the picture of the oil rig and worker, click on "View As One Page." You can see all twenty pictures now and their description by scrolling downwards.
-----
To see pictures of China's/"World´s 1st deep sea water crude oil rig, storage platform," click on the following link:



You will have to click on both pages (i.e. 1 and 2) to see all six pictures (e.g. 2 sets of 3 pictures).
-----
To see pictures of China's first 300,000 ton oil supertanker, click on the following link:



You will have to click on all four pages (i.e. 1,2,3, and 4) to see all four pictures.

I believe that the deals signed by Chinese companies in Canada do not include delivery contracts to China. In fact, I don't even know if such facilities exist that would make shipping oil from the west coast of Canada to China economically feasible.

Spike said:

I believe that the deals signed by Chinese companies in Canada do not include delivery contracts to China. In fact, I don't even know if such facilities exist that would make shipping oil from the west coast of Canada to China economically feasible.

Click to expand...

"Complicating the calculation is the fact that Canada’s backup market for its oil is probably China. Plans are already under way for pipelines from Alberta to Canada’s western coast for shipments to Asia. Although those could take up to a decade to build because of land considerations, Mr. Stelmach, Alberta’s premier, flew to China on Friday on a trade mission to Shanghai, Beijing and Harbin. He said one of his messages was, 'We’ve got energy.'”

China's 2,210-kw coal mining machine

Coal, oil, and natural gas belong together. Let's take a look at China's relatively new "2,210-kw coal mining machine."





"China makes 1st 2,210-kw coal mining machine
2008-12-14 00:06:27

The first China-made 2,210 kilowatt coal mining machine passed check and appraisal on Saturday in the northwestern Shaanxi Province, reducing the reliance on exports. (Xinhua Photo)

XI'AN, Dec. 13 (Xinhua) -- The first China-made 2,210 kilowatt coal mining machine passed check and appraisal on Saturday in the northwestern Shaanxi Province, reducing the reliance on [imports].

Trial operation showed the remote control machine, produced by Xi'an Coal Mining Machine Co. Ltd, can mine eight million tons of coal annually, according to the Shaanxi Provincial Science and Technology Department.

The price for each was 16 million yuan (2.3 million U.S. dollars), more than 40 percent lower than [imported] ones.

China's coal production doubled in the recent decade and reached 2.5 billion tons last year. But it can only produce coal mining machine with power capacity below 1,800 kw. Machines above 2,000-kw were [imported] from the U.S. and Germany."