China hopes to intensify cooperation with other members of the Shanghai
Cooperation Organization (SCO) in the oil sector, in which its own advantages
will also benefit international partners, said industry insiders attending a
business forum here Thursday.
"Cooperation in the oil sector enjoys rosy prospects and
will benefit all the SCO members," said Zhou Jiping, deputy general manager of
China National Petroleum Corporation.
After half a century's development, China has gained strong expertise and is
able to undertake massive oil and gas excavation projects, Zhou told an SCO
business forum on the sidelines of the annual summit meeting.
Many domestic companies can provide technological and professional support to
explore wider areas of cooperation with their international partners, he said.
In existing Chinese-funded oil projects overseas, at least 90 percent of the
workers are employed locally, creating many jobs for these countries, according
to Zhou.
"Chinese oil companies strictly abide by local laws and regulations in their
oil exploration operations overseas, boost local economic development and
preserve the local environment," he added.
The SCO groups Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and
Uzbekistan. In 2004, the most recent time that datais available, their combined
oil output and consumption stood at 720 million tons and 452 million tons
respectively.
China is the world's second largest oil consumer with last year's consumption
totaling 325 million tons. It is also the world's sixth largest oil producer
with 183 million tons in 2005.
Of the 144 million tons of crude oil China imported last year, 11 percent was
from its SCO partners.
The country has conducted joint oil and gas exploitation projects with its
central Asian neighbors in recent years.
A crossborder pipeline designed to transmit 20 million tons of oil a year
started to pipe oil from Kazakhstan to China last month,a move experts say will
help enhance China's oil supply and provide an ideal outlet for the oil exports
of Kazakhstan and other energy-rich countries in the region.
At Thursday's business forum, China's vice minister of communications Feng
Zhenglin said the six SCO members should speedup construction of three road
networks that will link China, Russia and the central Asia nations with the
Caspian Sea, Iran, Turkey and the European countries.