• Oil project starts making profit
The first shipment of crude oil to China from Abu Dhabi departed the Port of Das Island on May11, marking the payback of an investment in an onshore and offshore oil exploration and production project between China National Petroleum Corpand Abu Dhabi National Oil Co. The two companies signed off on the project in 2013 and contracted it out to Al Yasat, a joint venture established by CNPC and ADNOC. The project covers five independent offshore oil fields and an area of 7,800 square kilometers. It has laid the foundations for CNPC to achieve a broader and higher level of oil and gas business with its Abu Dhabipartners.
• BGP secures $1.6b contract
The Bureau of Geophysical Prospecting, a subsidiary of China National Petroleum Corp, signed a contract worth $1.6 billion on July 19 with Abu Dhabi National Oil Co for the world’s largest onshore and offshore three-dimensional survey, covering an area up to 53,000 square kilometers. The contract is also the biggest one of its kind that BGP has won to date. The signing was witnessed by Wang Yilin, chairman of CNPC, and Sultan Ahmed Al Jaber, the United Arab Emirates’ minister of state and CEO of ADNOC. On Sept 15, BGP started onshore exploration.
• CNPC receives first LNG shipment from Yamal project
China National Petroleum Corp offloaded the first liquefied natural gas cargo shipped from Yamal in northern Russia on July 19. The cargo was delivered via the northeastern sea route along the Arctic coast to CNPC’s receiving terminal in the county of Rudong, in the eastern province of Jiangsu. Officials said the Russian Arctic LNG project, which was put into operation in December2017, is the first major overseas project that China has carried out since the Belt and Road Initiative was proposed in 2013.It is also the largest investment China has made in Russia. The Yamal project’s second 170,000cubic meter ice-class LNG carrier finished loading in the Siberian port of Sabetta in August, anda third production line is being built and is expected to be commissioned in December this year, a year ahead of schedule. When completed, China will receive more than 4 million tons of LNG annually from the project.
• Modernized Kazakhstan refinery starts operations
The Shymkent Refinery in Kazakhstan became operational on Sept 28 after completing its second phase of renovation and an upgrading project. The ceremony was attended by Kazakhstan’s President Nursultan Abishevich Nazarbayev and Tan Weizhong, the deputy general manager of China National Petroleum Corp. Nazarbayev said at the event that the renovation of the refinery, as a key project related to the Belt and Road Initiative, was of great significance and would help oil and gas commerce between Kazakhstan and China moving forwards. Tan said that the success of the project was an important achievement of the BRI. The project was launched in 2014 and the first phase started operations in 2017. The Shymkent Refinery is one of the three biggest refineries in Kazakhstan. It is jointly owned by Kazakhstan’s State-owned oil company KazMunai Gas and PetroKazakhstan, a joint venture between CNPC and KazMunai Gas.