05-04-04

Saudi Arabian Oil Minister Ali Naimi held talks with Chinese government officials in Beijing that focused on crude-oil sales and joint investments, Naimi told. Among the key points of discussion, Naimi said, was Saudi Arabia's desire to increase the export of crude oil to China, which he said is currently importing around 300,000 bpd from Saudi Arabia.

China is the world's second-largest oil consumer after the US. The two countries are also studying the possibilities of forging joint ventures in the oil and mining sectors, he said.

Naimi noted that the state-run China Petroleum & Chemical Corp. (SNP), or Sinopec, has recently won a major contract to explore for natural gas in Saudi Arabia, while the state-owned Saudi Arabian Oil Co., or Aramco, is completing plans to expand an oil refinery in China's Fujian province.

Aramco has a 25 % stake in the refinery expansion project, with Sinopec holding a 50 % stake and ExxonMobil owning the remaining 25 % equity.

Naimi also said that he willdiscuss the possibility of China's building or contributing to the building of a railway extending from north of Saudi Arabia, through the capital Riyadh, and then to Dammam and Jubail in the eastern province, to transport mineral materials.

“China has international capability and technology for building railways,” Naimi said, adding to that talks also focused on the possibility of China's participation in the exploration of phosphates and raw bauxite. Naimi met separately with Vice Premier Zeng Peiyan, the Minister of Commerce Yu She Lai and the head of Sinopec Chin Tong Kai.

Economic ties apart, the oil minister's visit to China is seen as part of Saudi policy to strengthen political relations with major world countries such as Russia and China to counter the weakening ties with the US following the Sept. 11 attacks in which mostly Saudi terrorists were involved.

Source: Hong Kong Trade Development Council