China to Loan South Sudan $8 Billion for Infrastructure Projects

Discussion in 'China' started by cir, Apr 29, 2012.

  1. cir

    cir Senior Member Senior Member

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    By Jared Ferrie

    Apr 29, 2012 12:07 AM GMT+0800

    QUEUEQ..China will provide South Sudan $8 billion in development loans over the next two years, a government spokesman said.

    The loans will be used for road construction, agriculture, hydroelectricity, infrastructure and telecommunications, which would be built by Chinese companies, according to Barnaba Marial Benjamin, South Sudan’s government spokesman. He declined to reveal the cost of the borrowings.

    China signed agreements promising to provide the funding during South Sudanese president Salva Kiir’s visit to Beijing on April 23 to April 26. “It was a very successful visit,” Benjamin said by phone today from the capital Juba. “I think this funding came at the right time.”

    South Sudan acquired three quarters of the formerly united nation’s 490,000 barrels of oil a day output when it declared independence on July 9. The export pipelines and processing facilities remain in Sudan and the two countries have been unable to agree on fees for use of the infrastructure. South Sudan lost 98 percent of its revenue when it halted production in January after accusing Sudan of stealing $850 million worth of its oil. Sudan said it confiscated the crude to make up for unpaid fees.

    Kiir discussed South Sudan’s plan to build export pipelines that bypass Sudan with Chinese officials, Benjamin said, adding that China didn’t agree to finance such a project.

    “They will consider the fact that it is important to have an alternative pipeline,” he said.

    Alternative Pipelines

    South Sudan said in January that it was planning alternative links. It signed a memorandum with Ethiopia in February to build a pipeline via Djibouti, and said that it’s in talks with a Texas-based construction company to build another line to the Kenyan coastal town of Lamu.

    South Sudan’s chief negotiator with Sudan said on April 23 that his country has taken a “strategic decision” to no longer export its oil through Sudan.

    Oil revenue sharing is among issues outstanding since the south seceded after fighting a two-decade war with Khartoum. Talks since independence have failed to yield agreements on disputed border regions, and the two nation’s forces have clashed frequently along the frontier.

    China dispatched an envoy to the Sudanese capital Khartoum to try and help ease tensions, who would also probably visit Juba in South Sudan in the coming week, Benjamin said.

    Crude in both countries is pumped mainly by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd.

    China to Loan South Sudan $8 Billion for Infrastructure Projects - Bloomberg
     
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  3. cir

    cir Senior Member Senior Member

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    April 27, 2012 7:35 PM

    Venezuela, China team up to build oil refinery

    CARACAS, Venezuela — Venezuela and China are teaming up to build an oil refinery in southern China.

    Venezuelan Oil Minister Rafael Ramirez attended a ceremony on Friday marking the start of construction in the southern Chinese province of Guangdong. The refinery is to be completed in 2015 and is to cost $8.3 billion.

    Ramirez said the refinery will be able to process up to 400,000 barrels of crude a day, and is the first of three refineries Venezuela plans to help build in China.

    China National Petroleum Corp. is partnering with Venezuela's state oil company, Petroleos de Venezuela SA.

    Ramirez said in a company statement that Venezuela is currently selling China about 600,000 barrels of oil a day.

    China has also agreed to lend Venezuela about $38 billion in exchange for oil shipments.

    Venezuela, China team up to build oil refinery - CBS News
     
  4. cir

    cir Senior Member Senior Member

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    China firm to build part of refinery in Nicaragua

    MANAGUA, April 27 | Fri Apr 27, 2012 7:36pm EDT

    (Reuters) - China's CAMC Engineering Co Ltd will build a 1.08 million-barrel oil deposit tank and submarine pipelines for a refinery in western Nicaragua, authorities from the Central American nation told local media on Friday.

    CAMC's deal with Albanisa, an oil venture between Nicaragua and Venezuela, is worth $233 million. The project will take around 20 months to finish.

    Francisco Lopez, vice president of Albanisa, was quoted as saying that the refinery, located near Puerto Sandino on Nicaragua's Pacific coast, will produce 150,000 barrels per day and send oil to other nations in Central America.

    The entire refinery will cost around $6 billion, Lopez said. (Reporting By Ivan Castro; Editing by Gary Hill)

    China firm to build part of refinery in Nicaragua | Reuters
     

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