China’s state-backed CNPC, is planning to establish a logistics centre in Dubai, according to a report in China Daily today.
The company, which is the largest of China’s state oil firms and parent of PetroChina, aims to build a mammoth 200,000 square meter industrial park in the Jebel Ali Free Zone, in a bid to provide production lines for engineering equipment and closer support to operations in the Middle East and North Africa and to act as an emergency equipment store. The park will be a “halfway house on the road to the turbulent areas,” according to the China Daily report, citing a CNPC official.
“We have to learn lessons and the Dubai project is among a number of solutions designed to make us more nimble and flexible when pulling out from turbulent regions,” the CNPC official told China Daily. The political stability of Dubai means it will become a “safe haven” for the company, the source said.
In Iraq, CNPC currently jointly operates the Rumaila field with BP and has interests in the Al-Ahdab and Halfaya fields. It operates in Block 5 in Oman, has stakes in the Block 3 and MIS concessions in Iran and operates the Gbeibe EOR project and has a minority interest in the Al Furat field in Syria.
The company also has interests in South Sudan and a small development project at Amu Darya in Afghanistan.
Like Western oil firms, CNPC has suffered disruption to its MENA operations over the last year in Syria, Iran and Libya. However, the company has invested heavily in the region and is looking to operate more nimbly around areas of political risk.Â
Oil output from overseas projects operated by CNPC in which it has an equity stake – which excluses Iraqi projects – topped a record 1 million barrels per day last year, in line with targets. Its net income in 2011 was $14.36 billion.
Chinese state chemicals giant Sinochem is also establishing a hub in Dubai.
