BP, one of the world’s leading integrated oil and gas companies and China National Petroleum Corporation (CNPC) have entered into agreement on strategic cooperation on framework on shale gas exploration and production in the Sichuan Basin and future fuel retailing ventures in China and other international partnerships, it was reported.
BP Group Chief Executive, Bob Dudley, said success recorded by both companies in Rumaila oil field project in Iraq is a conviction that there are more opportunities for cooperation between CNPC and BP. “This strategic partnership not only strengthens the relationship between the UK and China’s largest energy companies, it further cements the relationship between China and the UK as global business partners,” he said in an interview.
“CNPC and BP have enjoyed a longstanding, cooperative relationship involving projects both in and outside of China. This framework agreement on strategic cooperation will further facilitate our two companies’ joint efforts in exploring opportunities on a global scale, be conducive to enhancing cooperation, and take our strategic partnership to a new height,” CNPC’s Chairman, Wang Yilin said.
President of the company’s branch in China, Edward Yang said: “BP has been committed to doing business in China for more than 40 years and we’re pleased to expand a partnership that supports continued growth of the Chinese energy sector.” He added “We expect China’s energy production to rise 47 percent and its consumption to grow 60 percent by 2035, making it the world’s largest energy importer. Through this agreement and others, BP is committed to being one of China’s preferred energy partners now and in the future.”
The agreement which is expected to add several billion dollars in future trade to BP’s already significant business with China was sealed when President of The People’s Republic of China, Mr Xi Jinping’s visited the UK. Reports say UK’s Prime Minister David Cameron also witnessed the signage.
BP’s investment expansion drive has also seen it take over 80 percent capacity of a $360 million mini-refinery in Houston with the explanation that it would refine just enough crude oil and help to avoid the restrictions that were placed on exporting crude oil out of the U.S. at the time.
According to reports, BP owns the new US Lower 48 onshore business.