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

China LNG imports double to record high in August


"Articulated arms for LNG unloading. A similar arrangement will be used at the Guangdong LNG terminal."

The doubling of China's LNG imports tells us three important things. Firstly, China's economy is booming. You already knew this.

Secondly, China is serious about meeting the targets of the Copenhagen Accord. The consumption of natural gas emits less carbon dioxide than coal or oil. This will slow down global warming.

Thirdly, natural gas is the cleanest fossil fuel. There are less contaminants in natural gas. Hence, less pollutants will be released. As China continues to increase its use of natural gas, the air quality should gradually improve.


"Natural gas is often described as the cleanest fossil fuel, producing less carbon dioxide per joule delivered than either coal or oil[20] and far fewer pollutants than other fossil fuels.
...
Natural gas produces far lower amounts of sulfur dioxide and nitrous oxides than any other fossil fuel."



"UPDATE I-China LNG imports double to record high in August
Fri Sep 17, 2010 9:41am GMT

*Aug LNG imports double to record high

*Most additional volume arrived at Dapeng

BEIJING, Sept 17 (Reuters) - China's imports of liquefied natural gas (LNG) doubled in August from a year earlier to a record high of about 1 million tonnes, an official source who had seen the trade data said on Friday.

Most of the additional volume likely arrived at a terminal in the southern Guangdong province, sources said.

The August imports were about 40 percent more than in July when China shipped in 711,716 tonnes of LNG.

China imported 462,484 tonnes of LNG in August 2009.

Imports at the Shanghai terminal were steady compared with previous months, but three LNG carriers sailed into a terminal in Fujian in August that normally takes two cargos a month, the sources said, declining to be named because they were not authorised to speak to the media.

"Most additional cargos must have headed to Dapeng," one source said.

Dapeng, in the southern province of Guangdong, is China's first LNG receiving terminal.

China, a fledging consumer of the super-cooled gas, has three receiving terminals in operation and is expected to add another two in the next year.

(Reporting by Tom Miles and Jim Bai; Editing by Ken Wills)"



"Sinopec starts building 1st LNG receiving terminal
Mon Sep 13, 2010 4:34am GMT

BEIJING, Sept 13 (Reuters) - China Petroleum & Chemical Corp (Sinopec) (0386.HK: Quote) started building its first liquefied natural gas (LNG) receiving terminal in eastern Shandong province last Friday after the project received final approval from the government.

The Qingdao terminal, able to handle 3 million tonnes of LNG imports per year, would cost 9.66 billion yuan ($1.43 billion) and was scheduled to be operational by November 2013, Sinopec 6000258.SS(SNP.N: Quote) said on Monday in a report on one of its websites ().

The project includes three LNG storage tanks with a capacity of 160,000 cubic metres each, one berth able to dock LNG carriers with shipping capacity ranging from 80,000 to 270,000 cubic metres and receiving facilities, as well as 400 kilometres of gas pipelines with a designed capacity of 4 billion cubic metres (bcm) per year.

Sinopec struck its first LNG deal late last year to buy 2 million tpy of the clean fuel for 20 years from Exxon Mobil Corp's (XOM.N: Quote) Papua New Guinea project.

The scale and schedule of the second phase of the Qingdao project would be determined later, subject to LNG resources and domestic gas market development, the company said.

Sinopec's domestic gas output would surpass 10 bcm this year and the length of its gas pipeline networks would reach 6,500 kilometres by the end of this year, it added.

(For a factbox of China's LNG projects and plans, double click:[ID:nTOE68906Y]) ($1=6.769 Yuan) (Reporting by Jim Bai and Aizhu Chen; Editing by Chris Lewis)"

Russia, China to invest $5.0 billion dollars in refinery: aide


The Sino-Russian refinery will resemble the one shown above.
[A general view of China National Offshore Oil Corporation's (CNOOC) oil refinery in Huizhou, China's southern Guangdong province on July 28, 2009. The CEO of CNOOC and Shell Petrochemical Co. said on Tuesday the joint venture plans to invest 1 billion yuan to expand capacity by 20 percent by the middle of 2010.]



"Russia, China to invest 5.0 billion dollars in refinery: aide
(AFP) – 14 hours ago

MOSCOW — Russia and China agreed on Tuesday to invest five billion dollars in the construction of a refinery in China as Moscow seeks to diversify its energy clients, an aide to Russian deputy prime minister Igor Sechin said.


Russian deputy prime minister Igor Sechin

Rosneft, Russia's biggest producer of crude, and China National Petroleum Corporation (CNPC) agreed earlier in the day to build a new, 13-million-tonne per year refinery in Tianjin, a port city near Beijing, Rosneft said.

"Investments in the project will total five billion dollars (3.8 billion euros)," a Sechin aide told AFP from Tianjin.

Russia will own 49 percent in the project and China 51 percent, he said.

"This is just the construction of the plant," he said, adding that under the second phase of the project the two companies planned to build at least 500 petrol stations in China.

Sechin, who is in China ahead of President Dmitry Medvedev's visit there on September 26-28, is in talks with Chinese officials and attended a ground-laying ceremony for the new refinery in Tianjin earlier in the day.

Russia will supply 70 percent of the crude to the plant, while the remaining 30 percent would come from the Middle East, Sechin's aide said, speaking on condition anonymity in line with government policy.

Rosneft said in a statement that the plant would be completed in 2015, while Sechin's aide said a feasibility study for the plant would be ready within the next six months.

It will take another two years to build the plant once the feasibility study is done, he added.

In recent years, Moscow and Beijing have intensified energy cooperation as Russia is keen to diversify its client base beyond its traditional European consumers and China is seeking to secure energy resources to fuel its growing economy.

Rosneft president Eduard Khudainatov, speaking at the ground-breaking ceremony, called the refinery a "landmark in the history of Russian-Chinese relations."

"This is another practical step in the development of cooperation between the largest oil companies of our two countries," Rosneft quoted him as saying.

Travelling to China at the invitation of Chinese President Hu Jintao, Medvedev will visit Dalian, Beijing and Shanghai, the Kremlin said."

BG Group and China's CNOOC sign massive 20-year LNG sales deal


Liquefied Natural Gas (LNG) terminal



"BG Group and China's CNOOC sign massive 20-year LNG sales deal
Wednesday, March 24, 2010

BG Group (LSE: BG) has signed a Liquefied Natural Gas (LNG) sales contract with state-owned China National Offshore Oil Corporation (CNOOC), concluding negotiations announced in May 2009, for the supply of 3.6 million tonnes of LNG per annum (mtpa) over a 20-year period. The deal is reported to be worth between US$40-80bn depending on varying oil price assumptions.

"These agreements are a landmark development in the relationship between our two companies, building on what is already a close and productive partnership in deep water exploration, offshore China”, BG chief executive Frank Chapman commented. “CNOOC is a highly accomplished company and we look forward to working together as we bring this new ground-breaking LNG project to fruition".

Under the terms of the contract, CNOOC will be supplied with LNG manufactured at the Queensland Curtis LNG facility, Australia. BG Group may also supply CNOOC from the group's global LNG portfolio.

The agreement is one of the largest LNG contracts in Australia. It is the world's first fully-termed sale and purchase agreement for the supply of LNG from coal seam gas, and marks the first sale of LNG from coal seam gas into China, BG said.

The Queensland Curtis LNG development is supported by BG’s LNG supply agreements for a total of 8.3mtpa, consisting of the 20-year CNOOC deal for 3.6mtpa, a 21-year agreement to supply Chile with 1.7mtpa and a 20-year agreement to supply up to 3mtpa to Singapore.

The facility is being developed by BG's wholly owned Australian subsidiary and subject to government approval, the FTSE100 constituent expects to sanction the project this year. The plant is expected to come on-stream by 2014. The plant will be supplied with coal seam gas from the extensive acreage in the Surat Basin.

Under the terms of parallel agreements between BG Group and CNOOC, the Chinese company is also investing in the development of the facility. CNOOC will acquire a 5% equity interest in the reserves and resources of certain BG tenements in the Walloons Fairway of the Surat Basin in Queensland. BG said the total book value of sold assets is approximately US$270 million.

CNOOC will also take a 10% equity investor in facility’s Train 1, which is the first of two liquefaction trains to form the first phase of the development. Additionally, the Chinese company will reimburse BG for 10% of costs incurred in respect of Train 1, which is expected to be paid in cash later this year. Furthermore, BG Group and CNOOC have agreed to participate in a consortium to construct two LNG ships in China that will be owned by the consortium.

BG Group and CNOOC have been in partnership in offshore exploration in China since 2006, and in 2008, the two companies agreed to explore further opportunities for strategic cooperation."



"BG Group plc (LSE: BG.) is a global oil and gas company headquartered in Reading, United Kingdom. It has operations in 25 countries across Africa, Asia, Australasia, Europe, North America and South America and produces around 680,000 barrels of oil equivalent per day.[2][3] It has a major Liquefied Natural Gas (LNG) business and is the largest supplier of LNG to the United States.[4]

It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index."

China deepens its resolve on energy security


China's Hai Yang Shi You 201, the "first deepwater pipe-laying [vessel] in Asia capable of operating at a water depth of 3,000 meters."



"On May 28, "Hai Yang Shi You 201" docked at the offshore engineering yard of Jiangsu Rongsheng Heavy Industries for outfitting and debugging.

Invested upon by Offshore Oil Engineering Co., Ltd. (COOEC), it is the first deepwater pipe-laying crane in Asia capable of operating in a water depth of 3,000 meters. With a Dynamic Positioning Class 3 System and a lifting capacity of 4,000 tons, "Hai Yang Shi You 201" is equipped to operate in unrestricted navigation outside the Arctic.

"Hai Yang Shi You 201" has integrated a number of world-class manufacturing technologies, and its detail design and construction were independently carried out in China. It belongs to the Eleventh Five-Year National Science and Technology Program and National High-Tech R & D Program, or 863 Program.

The project was launched in May 2005 and the construction began in September 2008. After the completion of "Hai Yang Shi You 201", COOEC is to take charge of its operation.

Release date: 28 May 2010"



"China deepens its resolve on energy security
OilOnline Managers posted on 7/13/2010

Chinese companies have stepped up their activities over the last year, and two recent reports from analysts Infield Energy Analysts and Wood Mackenzie suggest increased activity in the near future, especially as the NOCs venture into deeper waters.

In China's deepwater campaign, Infield forecasts a large-scale home-grown exploration and development campaign off China.

Over the next two decades, CNOOC plans to invest $30 billion in deepwater plays in the South China Sea with an aim to increase production of oil and gas to over 1 million b/d by 2020. Chinese NOCs, however, have little experience in deepwater operations, the report observes, as 98% of the country's operational platform infrastructure is within water depths of 500m or less.

China is moving into deepwater, though, and the DP3 Hai Yang Shi You 981 - the first deepwater semi to be designed and built in China - left the Shanghai Waigaoqiao Shipbuilding yard in late February. It can operate in waters to 3000m and drill to 10,000m. Additionally, Rongsheng Heavy Industry has built a deepwater pipelay vessel. The Infield paper calls the construction of the semi and pipelay vessel 'China's first steps towards a deepwater campaign'.

Of CNOOC's $30 billion planned investment, $2.2 billion will be used to engineer and fabricate a deepwater MODU, $880 million will go to the fabrication of a 3000m water depth drilling vessel, and $440 million is earmarked for a deepwater pipelay vessel, the paper notes. CNOOC believes the South China Sea is the offshore equivalent of its Daqing oil field, which produced 1 million b/d at its peak.

So far, CNOOC has, as a partner, logged a few deepwater finds offshore China, including the Liuhua 29-1 field and the nearby Liwan 3-1. The latter's FEED is complete, and a development plan was submitted to regulatory authorities earlier this year. Liwan 3-1, discovered in 2006, was the first deepwater discovery in Chinese waters; it holds an estimated 100-150bcm of gas. About a month ago, Husky Energy, operator of both the Liwan 3-1 and Liuhua 34-2 fields, announced an appraisal at its Liuhua 29-1 discovery in 765m of water gave 'encouraging results'.

The Liuhua 29-1 field is Husky's third significant deepwater gas discovery in block 29/26.

Sinopec is also launching a deepwater program and has acquired a stake in block 18 offshore Angola. Sinopec's plan is to gain deepwater experience offshore Angola and use the experience to develop its deepwater assets offshore China, according to the report.

PetroChina has also acquired three deepwater blocks offshore Myanmar. The company plans to start deepwater exploration in the South China Sea in 2015.

In Wood Mackenzie's recent report Chinese NOCs step up international expansion, the firm said its review indicates intense activity over the last year will result in net overseas production reaching a new record level of 1 million boe/d in 2010 from CNPC/PetroChina, Sinopec and CNOOC combined.

'In total the three Chinese NOCs [i.e. National Oil Company] have committed nearly US$25 billion to asset and corporate acquisitions since April 2009, far exceeding previous annual spending,' says Norman Valentine, senior analyst at WoodMac. 'Until recently Wood Mackenzie has characterized international expansion by the Asian NOCs as relatively conservative. Acquisitions over the last 12 months have changed the picture - we estimate that the three Chinese NOCs alone accounted for nearly 20% of global deal value in the first quarter of 2010.'

WoodMac anticipates this increased activity will continue.

'With large-scale deals of over US$9 billion committed so far in 2010, we expect the Chinese NOCs to maintain high levels of deal activity,' Valentine says.

The firm estimates Chinese companies have accessed 2 billion boe of commercial reserves.

As a result, Valentine says, WoodMac expects the NOCs will produce over 1 million boe/d from overseas operations this year.

WoodMac concludes that while it may take some time for Chinese NOCs to be considered leading players in the industry's emerging resource segments, Chinese NOCs are well positioned to maintain high levels of corporate activity in the future and build on the milestone production levels of 2010. OE

By: Jennifer Pallanich
Issue: July 2010"

[Note: Thank you to "Marchpole" for the picture of "Hai Yang Shi You 201" deepwater vessel.]

CNOOC finds pearl in Enping


China National Offshore Oil Corporation (CNOOC) Floating Production, Storage, and Offloading vessel (FPSO)


Helicopter landing on CNOOC FPSO



"CNOOC finds pearl in Enping

CHINA National Offshore Oil Corporation (CNOOC) has made a significant oil discovery in the Enping Trough of the Pearl River Mouth basin in the eastern part of the South China Sea.

Xu Yihe 18 June 2010 01:47 GMT


Hopes: Enping find raises CNOOC's expectations in the South China Sea

Industry sources said that the find could pave the way for a new standalone field development based around a floating production, storage and offloading vessel.

The discovery, which has yet to be publicly confirmed, was made through the drilling of exploration well Enping 22 in late May. The discovery well confirmed a pay zone thickness of more than 100 metres, one source said. Sources added that CNOOC could announce the discovery soon.

The well lies at a location about 100 kilometres south-west of the Panyu oilfield, which was just surrendered to CNOOC by Devon Energy in April and north of Block 28/20, which is being explored by Italy's Eni.

Industry officials suggested that oil reserves at the Enping Trough discovery could total up to 30 million cubic metres (190 million barrels), which could support a scheme to produce 30,000 barrels per day when production starts.

The field is 100% owned by CNOOC, which is understood to be planning to drill appraisal wells to further determine the size of the reserves.

Once confirmed, Enping could turn out to be the largest find to have been made in the shallow waters of the South China Sea in recent years.

Its discovery will be a boost for CNOOC's amibitions to double its domestic hydrocarbons supply, including liquefied natural gas imports, to 100 million tonnes per annum (2 million barrels of oil equivalent per day) by 2020. China's offshore output capacity is expected to reach about 1.4 million boepd by 2015, up from an expected tally of about 1 million boepd this year.

CNOOC has participated in major deep-water success on deep-water block 29/26 where operator Husky Energy has made multi-trillion cubic feet natural gas discoveries that are set to be developed. However, discoveries in the shallow-water areas at the Pearl River Mouth basin have been scarce in recent years potentially making Enping a new breakthrough.

CNOOC does have some acreage in the Enping Trough that is on offer to foreign companies for exploration. Block 27/06 is categorised as being in the region, though it is not immediately clear how close that acreage is to the Enping 22 discovery.

Well-placed industry officials said CNOOC is already thinking about building a new floater to develop the field once reserves and an overall development plan confirm that it justifies commercial production.

"The new discovery doesn't favour tie-back development, as the nearest producing field is about 100 kilometres away," said one source.

Since 1993, China has built about 13 of the 17 floaters currently operating in its waters. Some of these producing floaters have also been upgraded or had their lifespans extended.

Published: 18 June 2010 01:47 GMT | Last updated: 18 June 2010 01:47 GMT"

Cuba to Start Offshore Oil Exploration in Early 2011

"Due to the longstanding U.S. trade embargo against Cuba, the embargo limits the amount of U.S. technology that can be used" by Cuba. To unlock her offshore oil wealth, Cuba had to wait until China's equipment-manufacturing industry was sufficiently advanced to provide the complex technology. The time has come.



"Cuba to Start Offshore Oil Exploration in Early 2011
Posted on Aug 3rd, 2010



A Chinese-built drilling rig is expected to arrive in Cuban waters in early 2011; likely opening the way for full-scale exploration of the island’s untapped offshore fields.

Companies with contracts to search for oil and gas in Cuba’s portion of the Gulf of Mexico have already begun preparations to drill once the Scarabeo 9 rig gets on the spot. An official with Saipem, a unit of Italian oil company Eni told Reuters the massive semisubmersible rig should be completed at the Yantai Raffles shipyard in Yantai, China, by the end of this year.

The journey to Cuba will take two months, and once it arrives it will be put into operation almost immediately, said the official, who asked not to be identified. It will be used first as an exploratory well for a consortium led by Spanish oil giant Repsol YPF, which drilled the only offshore well in Cuba in 2004 and said at the time it had found hydrocarbons.

Cuba has said it may have 20 billion barrels of oil in its offshore, but the U.S. Geological Survey has estimated a more modest 4.6 billion barrels and 10 trillion cubic feet of gas. Repsol has been mostly silent on the long delay in drilling more wells, but it is widely assumed in the oil industry it was due to the longstanding U.S. trade embargo against Cuba.

The embargo limits the amount of U.S. technology that can be used, which complicates finding equipment because U.S. companies have long dominated the offshore oil business.

A number of oil service companies have solicited information about Cuban regulations, diplomats said. Cuba’s state-owned oil company Cupet has been silent about the offshore activity and rejected requests for interviews.

A government official said the requests were denied because Cupet did not want to speak during the BP oil spill in the Gulf.

The spill has never reached Cuba, but it has heightened safety concerns both in the government and among oil companies with offshore blocks, sources said.

The prospect of drilling in Cuban waters has also raised pollution fears in Florida, which is just 80 km away from the island’s maritime boundary."

CNPC reports major gas discovery in Turkmenistan


China-Turkmenistan cooperation.
(File photo: "On August 29 2008, President of Turkmenistan Gurbanguly Berdimuhamedov and Chairman of the People’s Republic of China Hu Jintao, who had arrived on an official visit to Ashgabat, held talks in the Turkmen capital.")



"CNPC reports major gas find in Turkmenistan
Tue Sep 28, 2010 3:35am GMT

BEIJING, Sept 28 (Reuters) - State-owned China National Petroleum Corp (CNPC) has discovered a major gas field on the right bank of the Amu Darya River in Turkmenistan that will beef up supplies to China, the company said on Tuesday.

CNPC Amu Darya River Natural Gas Corp had struck a steady flow of 1.439 million cubic metres of gas and 36.2 cubic metres of condensate oil from exploration well Oja-21 in block B on Sept. 21, CNPC said in a company newspaper.

A series of tests showed the region contained rich gas resources with potential geological reserves of more than 100 billion cubic metres (bcm) that could become a highly productive field, the report said.

CNPC planned to send 3 bcm of gas to China this year from the Amu Darya natural gas project, operated by CNPC under a production-sharing agreement with Turkmenistan.

Late last year, China and central Asian countries opened their first cross-border natural gas pipeline, which should be able to pump up to 40 bcm of gas per year to China by 2012-13. [ID:nLDE5BD0F2]

The pipeline runs nearly 2,000 km through Turkmenistan, Uzbekistan and Kazakhstan before entering Chinese territory in the northwestern Xinjiang region.

China received 2.38 bcm of gas via the pipeline in the first eight months of the year, according to China's National Development and Reform Commission. (Reporting by Jim Bai and Aizhu Chen; Editing by Chris Lewis)"

China's Tianjing is Asia's (and World's 3rd) largest dredger


Tianjing is China's/Asia's largest dredger. "The dredgers will deepen the mooring areas along the quays of these ports, which serve the oil & gas industry."



“'Tianjing,' China’s first large dredger, was delivered to its operator on January 19, 2010 in Shenzhen. 127.5m long and 23m wide, the new boat is equipped with an array of state-of-the-art mud digging equipment; with a total installed capacity reaching 20,020 kilowatts. The onboard reamer is designed with a power of 4200 kw. As the most powerful digging system in Asia, the dredger is able to dredge up large rocks up to 40 Mpa; in addition to mud, sand, and little rocks. Application of a large dredger may reduce the number of sea floor explosion events and boost the safety of projects; in addition to its environmental protection functions.

The boat is also equipped with three efficient mud pumps that can be used to reclaim land from the sea for a distance up to 6,000 m. Its unloading capacity allows the boat to ship the mud and sand it has dug out to other desired destinations; expanding the scope of operation. It works efficiently because of its mobility, easy dispatch, and fine adaptability."

China and Ghana sign US$15 billion worth of contracts


Chinese President Hu Jintao (R) shakes hands with his Ghanaian counterpart John Evans Atta Mills during a welcoming ceremony for President Mills at the Great Hall of the People in Beijing, capital of China, on Sept. 20, 2010. (Xinhua/Ding Lin)


Ghana is an enormous West African country. It is seven times larger than Taiwan or 80 percent the size of Italy. Africa (e.g. 30,221,532 km2) is an enormous continent that is three times larger than China (e.g. 1/15th of Earth's land-mass or 9,671,018 km2).


Ghana's offshore oil blocks are mostly unexplored. China can provide the technology and financing to enable Ghana to extract its offshore wealth.



"China, Ghana sign US$15 bln for infrastructure, oil and gas

Sep. 28, 2010 (China Knowledge) - China and Ghana, a West African country, last week signed a total of US$15 billion worth of contracts, including US$10.4 billion of bank lending for infrastructure project and US$3 billion of bank loan for oil and gas development, during a six-day Beijing visit by Ghanaian President John Atta Mills, sources reported.

The move is the latest in a string of Chinese investments on the resource-rich continent.

China Export Import Bank and the government of Ghana signed a US$10.4 billion concessionary-loan agreement for various infrastructure projects. The 20-year loan is subject to approval from the Ghanaian parliament and cabinet.

Ghana also signed a US$3-billion loan agreement with the China Development Bank to help develop Ghana's oil-and-gas sector. In addition, CDB guaranteed more than US$400 million for water and e-governance projects in Ghana.

Moreover, Ghana inked an agreement worth US$1.2 billion with Chinese company Bosai Minerals Group to build a bauxite and aluminum refinery in Ghana over four years. Bosai Minerals would purchase an 80% stake in Ghana Bauxite Co."



"China To Build Two Regional Hospitals In Ghana
Date: 24-Sep-2010

Shangai Construction Company in China has agreed to build two regional hospitals in Wa and Kumasi to enhance healthcare delivery. The gesture by the Chinese company is in support of the government’s ‘Better Ghana’ agenda in the health sector.

This was the outcome of President John Evans Atta Mills tour of the offices of the Shangai Construction Company on Thursday, September 23 as part of his official visit to China. Speaking to the Daily Graphic via telephone from China, the Communications Director at the Presidency, Mr. Koku Anyidoho, said the company had given the indication to support Ghana’s development efforts, particularly in the fields of infrastructural development and health delivery, which were of prime importance to President Mills.

President Mills enjoys special friendship with his Chinese counterpart, both of whom were Vice-President in the history of their respective countries. Mr. Anyidoho quoted President Hu as saying that his commitment to support the Mills administration was born of his conviction that “Whatever we do for Ghana will not be abused and misused”.

President Mills thanked the company for the support, believing that the good health of the people would lead to a healthy nation. He gave the assurance that whatever had been received would be used for their intended purpose.

In a related development, Mr. Anyidoho said a telecommunication company, Huawei, had pledged $6 million towards Ghana’s e-Governance project. Additionally, the company has agreed to offer scholarships to 30 Ghanaians to receive training in telecommunications in China.

Source: Daily Graphic"



"Ghana, China to sign $270m Agreement for Kpong Water Project

A $270 million loan facility to carry out expansion works at the Kpong Water Project is expected to be signed between the governments of Ghana and China when President John Evans Atta Mills begins his state visit to that country on September, 19.

The deal will ensure an additional supply of 40 million gallons of water daily to Accra and its environs to reduce the perennial water shortages in some parts of the national capital.

This was a key outcome of bilateral discussions between Vice-President John Mahama and the Minister of Commerce of China, Chen Deming, held on the sidelines of the World Investment Forum taking place at the port city of Xiamen , China .

In his remarks prior to a closed door meeting with Mr. Chen, Vice-President Mahama said the government was looking forward to signing the agreement as it would be a landmark of Ghana-China relations, especially on the eve of the 50th anniversary celebration of diplomatic relations between the two countries.

He told the Chinese minister that the Kpong water expansion project would contribute in no small way to helping Ghana to achieve the Millennium Development Goal on water. He said though the country was on track to attaining the MDG goal on water, the same could not be said for sanitation.

Government, he said was leaving no stone unturned in ensuring that progress was made in the sanitation sub-sector and the area of maternal and infant mortality. He stated also that Ghana was on course to halve poverty by 50% by 2015.

Vice-President Mahama expressed the hope that with the assistance and support of countries such as China , Ghana would be able to marshal the requisite investments and development assistance to enable it to achieve the MDG targets."

Repsol Sells Brazil Stake to Sinopec for $7.1 Billion


Repsol's offshore Brazilian fields



"Repsol Sells Brazil Stake to Sinopec for $7.1 Billion
OCTOBER 1, 2010, 5:29 A.M. ET
By SANTIAGO PEREZ

MADRID—In one of the largest Chinese oil acquisitions to date, Spain's Repsol SA Friday announced the sale of 40% of its Brazilian assets to China Petroleum & Chemical Corp. for $7.1 billion.

The joint-venture, valued at $17.8 billion overall, guarantees Repsol key funding to explore vast and coveted offshore oil fields in South America's largest economy, Repsol said in a statement. Sinopec officials couldn't be reached Friday.

The joint Brazilian operation will become one of Latin America's largest foreign-controlled energy ventures, as it will develop some of the world's most important exploratory discoveries in recent years, Repsol said in a filing with the stock market regulator. Repsol will have controlling interest in the joint venture with a 60% share.

"With this new investment, Repsol Brasil is fully capitalized to develop all of its current projects in Brazil, including world class discoveries in the Guara and Carioca pre-salt basins," Repsol said in a press release.

The transaction is also another sign of China's growing prominence on the international energy scene, as it expands its access and ownership of raw materials needed to back the country's economic expansion. The largest oil takeover by a Chinese company to date has been Sinopec Group's $7.2 billion acquisition in 2009 of Addax Petroleum Corp., based in Switzerland, only slightly more than the venture announced Friday.

In June, the International Energy Agency said that overseas investments by China's national oil companies in 2010 look as if they will outpace by far the $18.2 billion spent in 2009, and that was before the Repsol-Sinopec announcement. From January 2009 to April 2010 alone, the three majors—China National Petroleum Corp., Sinopec and Cnooc—spent around $29 billion world-wide to acquire oil and gas assets, the IEA said.

In addition to those direct investments, CNPC and Sinopec were involved in 11 loan-for-oil deals with eight countries worth $77 billion, and the companies entered contracts committing them to invest at least $18 billion in future exploration and development, mostly in Iraq and Iran, the IEA noted.

Sinopec Chairman Su Shulin at a post-earning press conference on Aug. 23 said his company was studying more overseas acquisition possibilities and confirmed that parent company Sinopec Group, which is state-owned, was in talks with Brazil's OGX Petroleo e Gas Participacoes SA over a bid for offshore assets in Brazil. Sinopec's 2010 first-half net profit rose 6.7% to 35.46 billion Chinese yuan ($5.3 billion) from 33.25 billion yuan a year. Sinopec has oil and gas exploration and production projects in more than 20 countries.

Brazil is a key target for Chinese investment, with resources deals worth $4.3 billion agreed so far this year compared with $362 million in 2009, according to data from Dealogic

Brazilian state oil company Petroleo Brasileiro SA, or Petrobras, also agreed to a $10 billion loan from China Development Bank last May in exchange for crude-oil supply to Sinopec's parent, China Petrochemical Corp., over 10 years. Petrobras also gave Sinopec rights to explore two deep-water blocks in Brazil for oil and natural gas.

Under the deal announced Friday, Repsol will retain 60% of the Brazilian venture, which is valued at $17.8 billion following the stake sale agreement. Repsol and Sinopec will continue their respective expansion plans in Brazil and will participate, jointly or individually, in future bidding rounds in the area, Repsol added.

Recently, Repsol shares were among top gainers and most actively traded in Spain, rising 5.1% to €18.9 ($25.8), lifting Madrid's key IBEX-35, which was 0.3% higher after opening little-changed on Friday. Shares in construction company Sacyr Vallehermoso SA, which owns 20% of Repsol, were jumped 10.7% to €4.85.

Write to Santiago Perez at [email protected]"



"Sinopec invests $7bn in Brazil oil alliance with Repsol
October 1, 2010 10:03am
by Barney Jopson
...
China considers access to oil and gas supplies a matter of national security as it is the world’s second-largest oil consumer, after the US, and produces less than half it needs domestically.

Repsol had been preparing its Brazilian operations for an IPO, but that plan will now be abandoned in favour of the Sinopec partnership. A Repsol spokesman told beyondbrics:

"We’re very pleased with this deal because it’s not only giving us funds for development, but will give us the possibility of having a stable and committed partner when we develop further projects."

For China’s oil majors, a presence in Brazil’s offshore “pre-salt” fields - so called because the oil is trapped under several kilometres of seawater, rock and a layer of salt - could help them gain operating experience in technically challenging situations."