• 3 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 7 hours LNG Glut To Continue Into 2020s, IEA Says
  • 9 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 12 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 14 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 15 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
Why Petrol Powered Cars Aren’t Going Anywhere

Why Petrol Powered Cars Aren’t Going Anywhere

Internal combustion engines are still…

Oil Fundamentals Overturn Geopolitical Risk

Oil Fundamentals Overturn Geopolitical Risk

Geopolitical risk from Iraq and…

Saudi Aramco In Talks To Build Refinery in China

China oil storage facility

Saudi Aramco is negotiating with China National Petroleum Corporation (CNPC) to build a refinery in China, Aramco chairman Khalid al-Falih, who is also Saudi Arabia’s energy minister, said while on a visit to China.

Saudi Arabian Oil Co, or Aramco, hopes to reach a deal to build the Yunnan refinery this year, al-Falih said on Saudi-owned Al Arabiya TV.

Commenting on demand for oil, al-Falih said that the Chinese demand remains “very healthy”.

Al-Falih also said that China had expressed interest in opening its stock markets to Aramco when the oil giant, valued at around US$2 trillion, carries out an initial public offering (IPO) to sell 5 percent of its equity expected to reap much as US$100 billion.

Although Angola’s crude oil exports to China surprisingly topped both Saudi Arabia’s and Russia’s for the month of July, in the first seven months of the year, the Saudis topped the list of China suppliers of crude, with an average daily rate of 1.05 million bpd. This gave the desert kingdom a 14-percent market share in China’s oil market, eking out 0.4 percent more than Russia’s exports to China.

Moreover, giant and established state-controlled Chinese companies such as CNPC may potentially benefit from the recently-announced attempt by Chinese authorities to impose stricter control on taxes paid by independent refineries, the so-called teapots. According to analysts, the clampdown may result in slowed short-term crude import plans by the teapots, although it is unlikely to lead to substantial impacts in the longer run.

Following complaints by established state-owned refinery giants that independents were not paying enough taxes, the Chinese National Development and Reform Commission (NDRC) said last week it could ban companies found to be avoiding taxes from importing crude oil for up to 12 months or in some cases, cancel their licenses to import crude.

The market anticipates that the final result of the tightening of the tax control would depend on how strict China would be with teapots.

By Tsvetana Paraskova For Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News