ADNOC signs $1.77 billion deal with China’s oil giant

The United Arab Emirates (UAE) is China’s second-largest trading partner in the Middle East, with commerce worth $60 billion in 2016. (Reuters)
Updated 19 February 2017
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ADNOC signs $1.77 billion deal with China’s oil giant

ABU DHABI: The China National Petroleum Corporation (CNPC) on Sunday secured an 8 percent share in an onshore oil concession in Abu Dhabi in a deal worth $1.77 billion, the Emirati company said.
The Chinese giant signed a deal with the Abu Dhabi National Oil Company (ADNOC) for a stake in the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), which operates the 40-year concession, ADNOC said in a statement.
“This will be a mutually beneficial partnership that will enable us to maintain strong production levels,” ADNOC Chief Executive Sultan Ahmed Al-Jaber said.
CNPC chairman Wang Yilin said he hoped the deal would “lead to further opportunities to participate in the United Arab Emirates’ (UAE) energy sector.”
CNPC is China’s largest oil and gas producer and supplier, responsible for more than half of China’s crude oil output and 71 percent of its natural gas production, the statement said.
CNPC also has oil and gas projects in 37 countries in Africa, Central Asia and Russia, the Americas, the Middle East and Asia Pacific, it said.
The UAE is China’s second-largest trading partner in the Middle East, with commerce worth $60 billion in 2016.
British oil giant BP last year secured a 10 percent share in the same oil concession, while France’s Total won a further 10 percent out of the total 40 percent earmarked for foreign companies.
Inpex Corp. of Japan secured five percent and South Korea’s GS Energy three percent.
ADNOC is still looking for a partner for the remainder of the concession, the statement said.
The Emirati company produces 3.1 million barrels per day (bpd), it said.


Pompeo says China is engaging in ‘predatory economics 101’

Would China have allowed America to do to it what China has done to America asked US Secretary of State Mike Pompeo. (AP)
Updated 18 June 2018
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Pompeo says China is engaging in ‘predatory economics 101’

  • He said China’s recent claims of “openness and globalization” are “a joke.”

DETROIT: China is engaging in “predatory economics 101” and an “unprecedented level of larceny” of intellectual property, Secretary of State Mike Pompeo told a business audience Monday.
Pompeo made the remarks at the Detroit Economic Club as global markets reacted to trade tensions between the US and China. Both nations started putting trade tariffs in motion that are set to take effect July 6.
He said China’s recent claims of “openness and globalization” are “a joke.” He added that China is a “predatory economic government” that is “long overdue in being tackled,” matters that include IP theft and Chinese steel and aluminum flooding the US market.
“Everyone knows ... China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.”
“Just ask yourself: Would China have allowed America to do to it what China has done to America?” he said later. “This is predatory economics 101.”
The Chinese Embassy in Washington did not immediately respond to a request for comment.
Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.
“I reminded him that’s not fair competition,” Pompeo said.
President Donald Trump has announced a 25 percent tariff on up to $50 billion in Chinese imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies.
Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Trump’s watch. Gary Cohn, Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.”
Pompeo on Monday described US actions as “economic diplomacy,” which, when done right, strengthens national security and international alliances, he added.
“We use American power, economic might and influence as a tool of economic policy,” he said. “We do our best to call out unfair economic behaviors as well.”