BP, CNPC to boost ties during Xi’s UK visit
British oil and gas firm BP and Chinese state-owned China National Petroleum Corp. are set to sign a cooperation deal that will further bolster joint projects between the two companies. The agreement signing is part of Chinese President Xi Jinping’s state visit to London this week, reported the Financial Times.
BP already cooperates with CNPC over oil and gas production at Iraq’s giant Rumaila field and runs one of the biggest offshore gas fields and network of gas stations in China.
In 2015, BP signed a deal worth around $20 billion to supply liquefied natural gas (LNG) to China National Offshore Oil Corp during Premier Li Keqiang's state visit to UK, according to China Daily.
"We see great potential for enhanced cooperation and collaboration between both sides, and the agreements will demonstrate our long-standing commitment to China," said Dev Sanyal, BP's executive vice-president for strategy and regions.
However, no specific investments will be announced and as China’s ambassador to the UK put it, while “substantial progress” had been made, “I can’t say 100 per cent whether there will be a signing on this visit,” according to Financial Times.
BP is working together with China’s Sinopec on natural gas supplies, advanced fuels, and lubricants. The tie-up with Sinopec also targets major global ports like Fujairah in the United Arab Emirates, Rotterdam in the Netherlands, and Tianjin, Qingdao, Shanghai, Ningbo and Shenzhen in China.
The cooperation agreements, expected to be sign in this week’s visit, will focus on crude trade and clean energy technologies. It could also usher in investments to West Africa, Iraq, or other areas of the Middle East.
