Chinese oil firms may pay a financial price for the lack of support for the NATO-assisted revolution in Libya, as representatives of the rebel National Transitional Council state there will be “political issues” with continuing to honour pre-conflict contracts from countries that opposed the rebel campaign.
“We don’t have a problem with western countries like Italians, French and UK companies. But we may have some political issues with Russia, China and Brazil,” Abdeljalil Mayouf, information manager at Libyan rebel oil firm AGOCO, told Reuters yesterday.
China did not use its U.N. Security Council veto power in March to block a resolution that authorised the NATO bombing campaign against Gaddafi’s forces, but it then condemned the strikes and urged compromise between his government and rebels. The country then backtracked, with Foreign Office official Hong Lei describing Jibril’s National Transitional Council as “an important political force in Libya” and purchasing $160 million in rebel oil.
“China’s investment in Libya, especially its oil investment, is one aspect of mutual economic cooperation between China and Libya, and this cooperation is in the mutual interest of both the people of China and Libya,” Chinese commerce official Wen Zhongliang has told a news conference. “We hope that after a return to stability in Libya, Libya will continue to protect the interests and rights of Chinese investors and we hope to continue investment and economic cooperation with Libya.”
Chinese companies courted Gaddafi heavily in the last years of his regime and were rewarded for the investments in the country with dozens of companies and 36,000 workers in-country at the outbreak of the conflict. Libya supplies China with 3% of it crude.
Qatar may benefit from Russia and China’s loss, having provided banking and military assistance to the rebels during the conflict, and purchased rebel oil. “Qatar, more than any other Arab country, was willing to put its money where its mouth was. Not only did it say it supported the rebels; it actually did. The rebels will remember this,” Shadi Hamid, director of research at the Brookings Doha Centre.
