The agreement was signed by 120 billion dollars to import Kuwaiti crude
Chinese strategy ..to buy oil from the Gulf with long-term contracts
Glaciology in the oil industry said that China's strategy in signing long-term contracts to ensure their crude from the Middle East, especially the Gulf States, to avoid price fluctuations and supply disruptions. The two scientists said, that the long decades of manipulation by speculators in oil from the Gulf region, and that countries like Kuwait and Saudi Arabia benefiting from the growth and stability of their economies through the establishment of economic relations with China, the second largest oil consumer in the world. Kuwait announced Sunday an agreement to export 300,000 barrels per day of crude to China for ten years, in a deal valued at $ 120 billion. Reuters quoted Nasser Al-mudaf, Managing Director of global marketing at KPC that starts today (yesterday). The amounts are equivalent to about 15 per cent of the exports of Kuwait crude oil and are subject to increase.
The agreement with the Chinese Government ' unibek company, according to world prices and purely commercial terms '. The export will be through the Kuwaiti oil tankers company, owned by the Petroleum Corporation. He said for the ' economic ' Hajjaj Bou khaddour, oil analyst at Kuwait's investments in China are refineries and oil storage tanks and petrochemical complex, the purpose of these investments open marketing channels for exporting oil to China. He added that these contracts are part of the implementation of the provisions of these investments, especially as China's second largest oil consumer in the world to follow the policy of diversification of its sources of imported oil. He stated that China needs more oil annually so resorted to sign such contracts with countries like Kuwait, Saudi Arabia and Russia, adding: ' previously, these contracts expire through short-term and renewed afterwards, but now signed contracts decades within China's strategy to contract for long periods with oil exporters '.
He said: ' China has a well thought out plan of economic performance that grows annually by 8 per cent, a significant growth compared to the rest of the economies of other countries in the world '. This growth is based largely on increased oil demand, hence such contracts are signed, to confront any fluctuation in oil prices or supply disruptions. Boukhdour said: ' the China agreement with Iran but because of Iran's problems with the West and America have resorted to Kuwait and Saudi Arabia to secure its need for oil, and ensure the continuity of the flow of oil to it '. Oil specialist said that the contracts ' check to Kuwait and Saudi Arabia, stable oil prices and lead to the development and growth of the economy and limits the intervention of speculators, and provides secure and easy mechanism for achieving revenue, increased oil production and exports '. He continued: ' make contracts in the development of economic relations with China, giving them economic stability as China is an influential member of the Security Council, as China's economic cooperation with Saudi Arabia and Kuwait supports economic systems '.
And about the mechanism used to determine oil prices when you sign long-term agreements, said hagag: ' this is subject to certain parameters to be agreed and be compatible with any developments during the period of the Convention '. But for the ' economic ' Habib Alawi, Director of the Middle East investment opportunities in oil and gas in Bahrain that China has a strategy of direct purchase of crude oil from the Middle East and the rest of the oil producing countries of the world. He added that it was seeking to acquire stakes in the fields producing small as in Syria and Egypt, together with the acquisition of stakes in Iraq as Rumaila, which produces 2.8 million barrels and Halfaya field which produces 500,000 bpd and Maysan fields, which produces 400,000 barrels per day. The top: ' China is seeking to secure oil reserves in Iraq, Egypt and Syria as it did in Sudan over the past years '. He said: ' this strategy achieved to China secure oil and allow the Gulf to diversify and increase the number of importers of oil, and also increase the volume of trade exchanges with China that grows its economy annually '.