Russia and Saudi Arabia are cooperating but are also struggling to export oil to China
The two major oil exporters last week extended the agreement to cut production, but behind the scenes a struggle is developing over the possibility of becoming the world's leading supplier of the world's second largest economy
Calcalist Service 14: 3103.06.17
Tags: China Russia Saudi Arabia Oil
The fall in oil prices in recent years helped bring Russia and Saudi Arabia closer together, but now the battle for China's core could lead to a dispute between the two countries.
Read more at Calcalist:
Oil exports from Iraq in May - at the peak of six months
Russian Economy Minister: "We can live forever with price of $ 40 per barrel of oil"
Opec: Agreement to cut oil output will be extended by another 9 months
While Russia and Saudi Arabia are fighting for the possibility of becoming the leading suppliers of China, which is considered a major importer of oil, this week Russia and Saudi Arabia have agreed to ratify the extension of the international agreement to cut oil production and strengthen ties between the two countries.
Putin and Prince Mohammed Putin and Prince Mohammed Photo: Rex, Reuters
Robin Mills, a senior executive at KAMAR Energy, compared the competition between the two countries to the "big game" - the 19 th century struggle between Russia and Britain over influence in Central Asia. "Now Asia is the player, every leading exporter - Saudi Arabia, Iran or Russia - needs this market," he said.
Huge agreements with China, and beyond
Russia made its first major move in China in 2014, against the backdrop of sanctions imposed by Western countries for its involvement in the war in Ukraine. In the same year, the two countries signed a 30-year agreement to supply natural gas to China. The contract is estimated to be worth $ 400 billion. According to some reports, Putin offered a large discount to the Chinese to ensure the existence of the agreement.
Putin, however, is not the first to express interest in the developing Chinese market. Saudi Arabia's King Abdullah began courting Beijing in 2006 and organized a joint venture between CNPC and Saudi Aramco. The deal included the construction of a huge refinery in Saudi Arabia that could handle 400,000 barrels of oil per day and the construction of a similar facility in China. The kingdom also agreed to transfer its Asian headquarters to Beijing. "We hope to build many more refineries in China," said Saudi Energy Minister Khaled Al-Falah. "We have a lot of room for growth and our Chinese partners are aware of that."
China is not the only market where Russia and Saudi Arabia compete. Earlier this year King Salman launched a wide-ranging Asian tour, signing oil and gas contracts worth $ 13 billion with countries such as Malaysia and Indonesia. The reason for the interest in the region is the strong demand: Asia accounts for nearly a third of the world's daily demand, which last year stood at 31.4 million barrels. Another country that is arousing interest is India, with a population of 1.3 billion. In October, Russia paid $ 13 billion for the acquisition of Assar Oil, India's second largest private oil company. Although the deal has not yet been formally approved, Putin continues to make concessions, inviting Indian Prime Minister Nerandra Moody to the international economic forum in St. Petersburg.
http://www.calcalist.co.il/world/articles/0,7340,L-3714353,00.html
trnslated by google
The two major oil exporters last week extended the agreement to cut production, but behind the scenes a struggle is developing over the possibility of becoming the world's leading supplier of the world's second largest economy
Calcalist Service 14: 3103.06.17
Tags: China Russia Saudi Arabia Oil
The fall in oil prices in recent years helped bring Russia and Saudi Arabia closer together, but now the battle for China's core could lead to a dispute between the two countries.
Read more at Calcalist:
Oil exports from Iraq in May - at the peak of six months
Russian Economy Minister: "We can live forever with price of $ 40 per barrel of oil"
Opec: Agreement to cut oil output will be extended by another 9 months
While Russia and Saudi Arabia are fighting for the possibility of becoming the leading suppliers of China, which is considered a major importer of oil, this week Russia and Saudi Arabia have agreed to ratify the extension of the international agreement to cut oil production and strengthen ties between the two countries.
Putin and Prince Mohammed Putin and Prince Mohammed Photo: Rex, Reuters
Robin Mills, a senior executive at KAMAR Energy, compared the competition between the two countries to the "big game" - the 19 th century struggle between Russia and Britain over influence in Central Asia. "Now Asia is the player, every leading exporter - Saudi Arabia, Iran or Russia - needs this market," he said.
Huge agreements with China, and beyond
Russia made its first major move in China in 2014, against the backdrop of sanctions imposed by Western countries for its involvement in the war in Ukraine. In the same year, the two countries signed a 30-year agreement to supply natural gas to China. The contract is estimated to be worth $ 400 billion. According to some reports, Putin offered a large discount to the Chinese to ensure the existence of the agreement.
Putin, however, is not the first to express interest in the developing Chinese market. Saudi Arabia's King Abdullah began courting Beijing in 2006 and organized a joint venture between CNPC and Saudi Aramco. The deal included the construction of a huge refinery in Saudi Arabia that could handle 400,000 barrels of oil per day and the construction of a similar facility in China. The kingdom also agreed to transfer its Asian headquarters to Beijing. "We hope to build many more refineries in China," said Saudi Energy Minister Khaled Al-Falah. "We have a lot of room for growth and our Chinese partners are aware of that."
China is not the only market where Russia and Saudi Arabia compete. Earlier this year King Salman launched a wide-ranging Asian tour, signing oil and gas contracts worth $ 13 billion with countries such as Malaysia and Indonesia. The reason for the interest in the region is the strong demand: Asia accounts for nearly a third of the world's daily demand, which last year stood at 31.4 million barrels. Another country that is arousing interest is India, with a population of 1.3 billion. In October, Russia paid $ 13 billion for the acquisition of Assar Oil, India's second largest private oil company. Although the deal has not yet been formally approved, Putin continues to make concessions, inviting Indian Prime Minister Nerandra Moody to the international economic forum in St. Petersburg.
http://www.calcalist.co.il/world/articles/0,7340,L-3714353,00.html
trnslated by google
