Update on Overseas Investments by China’s National Oil Companies (NOCs) Achievements and Challenges since 2011
Overview of Oil and Gas Demand and Supply in China
- Oil Demand: China's oil demand has been steadily increasing, as shown in Figure 1.
- Crude Oil Imports: In 2013, China imported crude oil primarily from the Middle East, Africa, and Latin America, as illustrated in Figure 2.
- Natural Gas Demand and Supply: Natural gas demand has grown significantly, while supply remains largely dependent on domestic sources, as indicated in Figures 3 and 4.
Major Investment Trends and Achievements
- Increased Overseas Production: China's overseas oil and gas production has notably increased, with a focus on regions like the Middle East, Africa, and North America, as shown in Figure 5.
- Geographic Shift: There has been a significant increase in investments in OECD member countries, such as the United States, Canada, and Australia.
- Creating Win-Win Situations: Investments aim to develop domestic resources while fostering cooperation with resource-rich countries, as detailed in Table 1.
Deepened Co-operation and Value Chain Expansion
- Co-operation with Resource-Rich Countries: Enhanced partnerships with countries rich in oil and gas resources, focusing on joint ventures and long-term supply agreements.
- Refining and Pipeline Investments: Expansion into refining and pipeline infrastructure, as seen in Figure 6.
- Unconventional Resources: Significant investments in unconventional gas production, particularly in North America, as depicted in Figure 7.
Risks and Challenges
- Security Concerns: Risks associated with securing transnational pipelines and personnel safety.
- Political Instability: Challenges posed by uprisings and sanctions in the Middle East and North Africa, influencing China's foreign policy.
- Sudan and South Sudan: Ongoing issues related to oil production and imports from these countries, as highlighted in Figure 10.
Conclusions
- Overall Progress: Despite challenges, China's NOCs have made significant strides in expanding overseas operations.
- Future Outlook: Continued focus on diversifying energy sources and deepening international co-operation.
Annexes
- Annex 1: Details of Chinese overseas oil and gas upstream acquisitions from January 2011 to December 2013.
- Annex 2: Historical data on Chinese overseas oil and gas upstream acquisitions from January 2002 to December 2010.
- Annex 3: Motivations for NOCs to invest overseas and strategies employed.
- Annex 4: Key targets of China’s 12th Five-Year Plan for Energy.
Figures and Tables
Boxes
- Box 1: CNOOC’s landmark Nexen acquisition.
Note: Figures and tables referenced are placeholders and should be replaced with actual references.
