Foreign Correspondence

[Amaunet]

China, Uzbekistan sign major oil deal

Meanwhile China has inked a major agreement to set up $600 million joint venture with oil-rich Uzbekistan.

Chinese President Hu Jintao and Uzbek President Islam Karimov Karimov met in Beijing on Wednesday and witnessed the signing of 14 agreements that are expected to open ways for more co-operation in trade, customs, high technology and energy.

Among the agreements signed was the establishment of a joint venture by China National Petroleum Corp and its Uzbekistani counterpart.

"It's worth a total investment of $600 million and is seen as an important step for energy co-operation between the two countries," People's Daily quoted Karimov as saying.

Already facing a soaring energy demand, its booming economy and industrialisation is expected to make China dependent on foreign supplies for about 50 per cent of its oil and natural gas requirements even as the country faces a shortage of coal.

Hu and Karimov also signed an agreement to establish a "friendly co-operative partnership" on Wednesday, signalling a new determination on both sides to further consolidate the traditional friendship.





China to set up oil giant; signs major deal with Uzbekistan
Beijing, May 26. (PTI): Even as it signed a major oil deal with Uzbekistan, China is to establish its first independent oil giant, the Great-Wall United Petroleum Company (GUPC), next month which will initially concentrate on gas exploration abroad.

The month of June has been decided as the date for the setting up of the new oil giant, President of the China Chamber of Commerce for the Petroleum Industry (CCCPI) Gong Jialong said.

The CCCPI, China's leading industry association for independent oil firms, organised the first preparatory session for the establishment of GUPC at the end of last month.

According to the association's General-Secretary, Wang Yong, the united company will represent the joint forces of association members.

Once formed, GUPC will be the fourth largest oil conglomerate in China's oil industry, long dominated by State-owned PetroChina, Sinopec and China National Offshore Oil Corp (CNOOC).

Representing at least 100 domestic privately-owned oil firms, GUPC is expected to raise up to five billion yuan (604 million US dollars) in operational capital, a newspaper owned by the All-China Federation of Industry & Commerce reported.

http://www.hindu.com/thehindu/holnus/006200505261254.htm