China prospecting for oil in Arab countries

China National Petroleum Corporation, the largest oil and gas firm in China, has invested in 22 oil and gas projects in Arab countries.

Its investments in Arab countries since 2000 amount to US$$60 million. CNPC also has 200 operational teams working in these locations. Its search for oil and gas to feed China’s enormous appetite for energy extends beyond Arab countries: it has invested in 48 more projects in non-Arab countries.

Its latest Arab investments went to Sudan where it has seven projects ongoing and Iraq, where it completed a project in 2011 that gave it the ability to produce 6 million tons of oil a year.

Wang Hongtao, deputy director-general at CNPC's international department, said the company helped Sudan build a complete industrial chain for the oil business,

“The country can . . . meet its own demand for oil, but also export to nearby countries and Europe,” he said.

Other Chinese state-owned firms have also invested in the Middle East. China Petrochemical Corporation or Sinopec has cooperated with 13 countries in the League of Arab States. Sinopec imported about 100 million tons of crude oil from the league in 2011, or some 54% of its total imports.

In 2011, Arab countries were the source of 31% of the global crude oil output and China was the source of 5.7%.