Total to invest in major China project
(China Daily)Updated: 2006-12-14 16:44
The French energy powerhouse is collecting data and evaluating the exploration feasibility of 12 blocks of land in Northwest China known as the Tarim Basin, according to Francois Issard, Total's president of Exploration and Production Ventures in China.
PetroChina opened the 12 blocks for international bidding last July. The bidding is not exclusive. But Total is experienced in high-temperature and high-pressure exploration. Therefore the French giant is confident it can offer a competitive bid if it wants, said Jacques de Boisseson, general representative of Total in China.
Total is now comparing opportunities generated from the Tarim Basin with other exploration chances around the world, Boisseson added.
Concerning offshore business, Mattenet said the company would give priority to in-depth offshore projects in future co-operation with CNOOC within China.
CNOOC Deputy Chief Engineer Zhang Fengjiu welcomed Total's enthusiasm for more co-operation with his firm in China, commenting that, historically speaking, Total has been quite successful and experienced in offshore exploration in China.
CNOOC may consider partnering with Total again in China if there are appropriate opportunities, Zhang added.
Total started offshore exploration in China in the 1980s. The firm withdrew from the Chinese market after making some discoveries in the South China Sea.
Besides plans for domestic co-operation, Total already operates with Chinese firms in other parts of the world.
It serves as the operator for CNOOC's two offshore oil projects in Nigeria, Akpo and Egina. CNOOC is China's largest offshore oil producer, and purchased a 45 per cent stake in Nigeria's Akpo deposit in April this year.
"The Nigerian projects are progressing on track and we are satisfied with the operation of our partner Total," said Li Yongfeng, a CNOOC official. "In fact, both parties want to further expand our partnership globally."
Co-operation between global oil giants such as Total and their Chinese counterparts will very likely turn out to be a win-win situation for both sides, said Lee Meileng, chief Beijing analyst of Platts, an energy research firm.
"Given the surging demand for oil and gas in China, such joint projects will play positive roles in relieving the country's energy thirst," Lee said.
Total said that through technological innovation and increased investment in
offshore projects, extractable global oil reserves could be doubled from the
current estimate of 1,200 billion barrels. "Instead of conducting mergers and
acquisitions, we choose to explore by ourselves on a global scope to increase
reserves," Mattenet said.
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