China and Africa Cooperate in Petroleum Industry
By WANG WEI
Africa is rich in oil resources. In 2014, Africa’s proven reserves were estimated at 132.1 billion barrels, more than North America and the Asia-Pacific combined. The three most oil-abundant countries on the continent are Libya (46.4 billion barrels, 3.4 percent of world total), Nigeria (37.2 billion barrels, 2.7 percent of world total) and Angola (13.5 billion barrels, one percent of world total). Africa’s oil output is rising due to new technology and exploration. It is estimated that proven oil reserves will grow by 15 billion barrels in the next five years, eventually accounting for one quarter of all oil outside the Gulf area.
Cooperation Between Africa and China
African oil production is heavily dependent on international companies for technology and capital. In recent years, African oil producers have been fighting for a fair share of petrol profits. In keeping with principles of a fair and just international order, China insists on mutual benefits with Africa. This contrasts starkly with Western countries, especially with regards to oil profits. Over the past 30 years, China National Petroleum Corporation (CNPC), Sinopec and China National Offshore Oil Corp. (CNOOC) have signed nearly 40 agreements with more than 20 African countries. They have invested more than US $10 billion in Africa’s oil sector, covering exploration, production and international trade.
Proven Oil Reserves and Production in Africa
|
Countries |
2013 proven reserves (billion barrels) |
2013 production(thousand barrels/day | ||||
|
reserves |
Share |
reserves/ production |
production |
compare with 2009 |
share | |
|
Algeria |
12.2 |
0.90% |
18.5 |
1809 |
-0.30% |
2% |
|
Angola |
13.5 |
1% |
20 |
1851 |
3.80% |
2.30% |
|
Chad |
1.5 |
0.10% |
33.7 |
122 |
3.50% |
0.20% |
|
Republic of Congo |
1.9 |
0.10% |
18.2 |
292 |
8.10% |
0.40% |
|
Egypt |
4.5 |
0.30% |
16.7 |
736 |
-0.60% |
0.90% |
|
Equatorial Guinea |
1.7 |
0.10% |
17.1 |
274 |
-10.80% |
0.30% |
|
Gabon |
3.7 |
0.30% |
41.2 |
245 |
6.50% |
0.30% |
|
Libya |
46.4 |
3.40% |
76.7 |
1659 |
0.50% |
2% |
|
Nigeria |
37.2 |
2.70% |
42.4 |
2402 |
16.20% |
2.90% |
|
Sudan |
6.7 |
0.50% |
37.8 |
486 |
1.50% |
0.60% |
|
Tunisia |
0.4 |
NA |
14.6 |
80 |
-4.70% |
0.10% |
|
Others |
2.3 |
0.20% |
44.2 |
143 |
-8% |
0.20% |
|
Africa total |
132.1 |
9.50% |
35.8 |
10098 |
4.20% |
12.20% |
Source: BP Statistical Review 2013
In Northeastern Africa, Chinese oil companies have launched a series of programs to help local partners explore and drill for oil. These inputs significantly boost the capacity of local oil industry. Sudan, for instance, has turned from a net importer into an exporter since cooperating with CNPC about 10 years ago.
At the same time, in order to promote socio-economic development in Sudan, CNPC has built hospitals, schools, roads, bridges and airports. In the first decade of the century, CNPC invested US $32.28 million in Sudanese utilities with benefits for more than 1.5 million locals. Now, there are more than 100 Chinese companies working in Sudan with a total public welfare investment of US $100 million.
The Sahara Desert is one of the most geologically complex areas for pretroleum projects. CNPC faced a lot of difficulties when working on the N’Djamena project in Chad, where security is poor and natural conditions are harsh. Most of the oil in Chad is highly coagulated and difficult to explore. However, following CNPC’s technical innovations, the Chinese team overcame the difficulties in exploration.
On June 29, 2011, the first refinery in Chad came on stream, signifying completion of CNPC’s project in Chad. The operation includes an oilfield and a refinery with a one million ton annual output, and a 311-kilometer pipeline. The N’Djamena refinery is now the biggest joint venture and biggest industrial company in Chad. The project is also the second largest of CNPC’s oversea refineries, producing LPG, diesel and fuel oil, and supplying locals with domestic oil products. It also contributes to the modernization of Chad’s industrial sector.
