desert burner
October 18th, 2009, 07:13 AM
One of China’s biggest oil companies is set to start prospecting for oil in northern Kenya by the end of this month. According to the UK based Financial Times, CNOOC, one of China’s big three state-owned energy groups, will start its search for oil before the end of October. It also has exploration rights for a second block in the Lamu basin.
China is also set to take over from Qatar the development of a multi-billion dollar port and transport corridor that could provide a new export route for Chinese oil in southern Sudan, the report said. Nairobi initiated talks with Qatar over a potential $3.5 billion investment in the Lamu port project late last year in return for a lease on 40,000 hectares of land to grow crops.
But no deal was struck and Prime Minister Raila Odinga told the Financial Times that he now viewed China as better suited for the project. “The Chinese offer the full package,” he said referring to the combination of financing and technical expertise that state-backed Chinese banks and construction companies have rolled out across Africa.
A Kenyan delegation led by Mr Odinga flew to China late on Wednesday for talks on the project involving the construction of a port in Lamu and road and rail links to the country’s borders with Ethiopia and Southern Sudan.
“China’s engagement with the continent has gathered pace in recent weeks as it has pursued a multi-billion dollar deal for oil, mineral resources and infrastructure in Guinea and a bid for up to six billion barrels of Nigeria’s oil reserves,” the report said.
“Kenya does not have the proven mineral resources that have attracted Chinese companies elsewhere. But China has extensive oil interests in neighbouring Sudan, it is an important lender to states such as Ethiopia and Chinese contractors are gaining a dominant position in public works projects across East Africa,” it added.
The Lamu port, road and rail links which have been dubbed Kenya’s “second corridor” could enable the development of northern Kenya and accelerate economic growth in connected parts of Ethiopia and Sudan. It could also provide an alternative route for oil out of southern Sudan.
China is also set to take over from Qatar the development of a multi-billion dollar port and transport corridor that could provide a new export route for Chinese oil in southern Sudan, the report said. Nairobi initiated talks with Qatar over a potential $3.5 billion investment in the Lamu port project late last year in return for a lease on 40,000 hectares of land to grow crops.
But no deal was struck and Prime Minister Raila Odinga told the Financial Times that he now viewed China as better suited for the project. “The Chinese offer the full package,” he said referring to the combination of financing and technical expertise that state-backed Chinese banks and construction companies have rolled out across Africa.
A Kenyan delegation led by Mr Odinga flew to China late on Wednesday for talks on the project involving the construction of a port in Lamu and road and rail links to the country’s borders with Ethiopia and Southern Sudan.
“China’s engagement with the continent has gathered pace in recent weeks as it has pursued a multi-billion dollar deal for oil, mineral resources and infrastructure in Guinea and a bid for up to six billion barrels of Nigeria’s oil reserves,” the report said.
“Kenya does not have the proven mineral resources that have attracted Chinese companies elsewhere. But China has extensive oil interests in neighbouring Sudan, it is an important lender to states such as Ethiopia and Chinese contractors are gaining a dominant position in public works projects across East Africa,” it added.
The Lamu port, road and rail links which have been dubbed Kenya’s “second corridor” could enable the development of northern Kenya and accelerate economic growth in connected parts of Ethiopia and Sudan. It could also provide an alternative route for oil out of southern Sudan.