Indian and Chinese companies come together to exploit Syrian oil
This is the first ever case of Sino-Indian cooperation in the energy field. Beijing and New Delhi will exploit the Al Furat oil fields in Syria.
New Delhi (AsiaNews/Agencies) China and India are set to jointly acquire 37% of shares in Syria's oil fields for the cost of 573 million US dollars. This is the first joint operation between the two energy-starved countries.
The Indian Oil and Natural Gas Corp (ONGC) and the China National Petroleum Corp (CNPC), both state-owned, will each have 50% of the Al Furat oil fields. Production is already under way to yield to each one 60,000 barrels of crude oil per day without the need to invest first in research.
In the past, the two companies have often clashed across the world in the race to access energy sources: India imports 70% of its oil needs while China imports more than one-third.
In August, the CNPC outbid the ONGC in Kazakhstan and again in Angola in October, however it was constrained to make steep offers. Experts say the war between the two giant states is one of the most important factors behind increased oil costs in 2005.
The collaboration between the two nations could allow them to capture important energy sources and to share them. Subir Raha, ONGC president, said the two companies have been working together already for three years to exploit reserves in Sudan, in which they hold significant stakes.
"This is an important milestone. Instead of competing wherever possible, we should work together," Indian Petroleum Secretary S.C. Tripathi said. Last April, the Chinese premier, Wen Jiabao, on a visit to India, had already said that "energy cooperation" was a "necessary part" of ties between the two nations. A visit to Beijing by India's Oil Minister Mani Shankar Aiyar, is slated for 10 January 2006, to discuss further collaboration in the energy sector. Experts say joint research into natural oil and gas reserves is under way, as well as the drawing up of guidelines for the creation of joint ventures between Indian and Chinese companies, including state-owned ones.
However many doubt if stable collaboration between the two states is truly possible, recalling a border war back in 1962, which is as yet officially unresolved, and a recent history riddled with suspicion and hostility. But, should this come about, it would pave the way for a "new global scenario with a dangerous competitor, especially for major oil companies in the west", said Praveen Martis, analyst and consultant at Wood Mackenzie. (PB)
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04/10/2005
20/11/2007
