- News>
- World
China, Saudi Arabia sign major natural gas deal
Beijing, Mar 08: China has signed a major deal on natural gas drilling and production in Saudi Arabia, boosting Beijing`s quest for new sources for its surging energy requirements.
Beijing, Mar 08:
China has signed a major deal on natural gas drilling and production in Saudi Arabia, boosting Beijing's quest for new sources for its surging energy requirements.
The deal was signed on Sunday between the Saudi government and the China National Petrochemical Corp (SINOPEC).
The agreement, covering an area of 40 sq km in the south of Saudi Arabia's Rub al Khali province, was also signed by the leading Saudi Arabia oil provider, Arabian American Oil Company (ARAMCO), Xinhua news agency reported.
A senior SINOPEC officials said the project was a landmark in the Sino-Saudi ties in general and in the bilateral economic and trade co-operation in particular. He said the total spending in the first phase of the project was set to be 300 million US dollars, adding that SINOPEC has already made contacts with several banks over the funding of the scheme and some Saudi banks showed willingness to step in.
Under the deal, SINOPEC and ARAMCO will launch a company for drilling and production at the contracted zone with ARAMCO holding a 20 per cent quota.
With the Chinese economy rising at near double-digit rates in recent years, the country's dependence on the world oil market is also growing at a fast pace Bureau Report
The agreement, covering an area of 40 sq km in the south of Saudi Arabia's Rub al Khali province, was also signed by the leading Saudi Arabia oil provider, Arabian American Oil Company (ARAMCO), Xinhua news agency reported.
A senior SINOPEC officials said the project was a landmark in the Sino-Saudi ties in general and in the bilateral economic and trade co-operation in particular. He said the total spending in the first phase of the project was set to be 300 million US dollars, adding that SINOPEC has already made contacts with several banks over the funding of the scheme and some Saudi banks showed willingness to step in.
Under the deal, SINOPEC and ARAMCO will launch a company for drilling and production at the contracted zone with ARAMCO holding a 20 per cent quota.
With the Chinese economy rising at near double-digit rates in recent years, the country's dependence on the world oil market is also growing at a fast pace Bureau Report