China to drill for oil in Abu Dhabi

China, the world's biggest energy consumer, could begin drilling for oil in Abu Dhabi as early as next year.

China National Petroleum Corporation, China's largest oil company, and Abu Dhabi National Oil Company are expected to begin oil drilling talks this July. This follows a strategic cooperation agreement signed last January during a visit by Chinese Premier Wen Jiabao.

CNPC Vice President Wang Dongjin said the company was looking at five onshore and two offshore exploration blocks in Abu Dhabi. He hopes a firm exploration agreement will be signed by the third quarter of this year.

"For the drilling, I think maybe early next year," he said. "Abu Dhabi National Oil Company, they welcome the foreign investors to do risk exploration."

CNPC has a team of 20 people evaluating the technical and economic merits of the seven blocks, and will increase its presence in Abu Dhabi once drilling begins.

"China is like many countries in the Far East," said UAE Energy Minister Mohammed Al Hamli. "It's one of the major importers of our crude, and it's natural that we strengthen our relationship with the Chinese . . . .”