Saudi Arabia King Abdullah in China for energy, security talks

Dubai (Platts)--22Jan2006

Saudi Arabia's King Abdullah arrived in Beijing Sunday to hold talks with
senior Chinese officials on boosting commercial and energy ties between the
two countries, the Saudi Press Agency reported. 
     King Abdullah will visit China from Jan 22-24 at the invitation of
Chinese President Hu Jintao, who is expected to meet with the King Abdullah
during his visit.
     Saudi Arabia's ambassador to China, Saleh al-Hujeilan, said the trip to
China would be "very important" and further enhance Saudi-Chinese relations.
     The talks between King Abdullah and President Hu Jintao are expected to
focus on energy and security issues. Saudi Arabia is China's main oil supplier
as Beijing imports 14% of its total oil requirements from the kingdom.
     "The Chinese government places great importance on this visit," China's
foreign ministry spokesman said adding King Abdullah and President Hu Jintao
would explore ways to further expand cooperation.
     The meeting builds on recent cooperation efforts.      
     In November 2005, Saudi oil minister Ali Naimi and Zhang Guobao, vice
minister of China's top economic and social policy planner National
Development and Reform Commission, called for greater energy cooperation.
     State oil company Saudi Aramco has already teamed up with ExxonMobil and
Chinese state-controlled oil group Sinopec in a $3.6-bil Fujian integrated
refining and ethylene joint venture project in China's southern Fujian
province. 
     In Saudi Arabia, Sinopec is also in partnership with Saudi Aramco for the
exploration and production of non-associated gas and condensates in the 40,000
sq km Block B in the Empty Quarter or Rub al-Khali. Sinopec has a 80% interest
in the project, with Saudi Aramco controlling the remaining 20%    
     Bilateral trade between the two countries has increased 59% year-on-year
in the first 11 months in 2005 to about $14.5-bil, the spokesman said. 
     China's overall foreign trade grew by around 23% during the
same period, he noted. A key commodity which China imports from Saudi
Arabia is crude oil, which amounted to 20.01-mil mt (400,200 b/d) in
January-November 2005, up 33.14% on the year.
     Saudi Arabia was China's top crude supplier in November, exporting a
total 2.1-mil mt (15.4-mil bbl) in the month, up 71.84% from October and up
26% on the year. 
     The market share of Saudi crude in China rebounded to 20.35% in November,
as compared to 10.88% in October.

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