Oil exporting countries have expressed strong interest in trade
and exploration with China even as they voiced concern that rising
prices could weaken demand from the fast-paced economy.
Nigerian Energy Minister Odein Ajumogobia said his country plans
to invest US$5 billion next year for energy development and
production, with US$4 billion of that amount open to third-party
investors.
"China and Nigeria can deepen cooperation as huge business
opportunities exist," Ajumogobia told China Daily over the
weekend at the Third OPEC Summit hosted by Saudi Arabia, the
world's biggest oil producer and largest source of imports for
China.
Along with China's state-owned enterprises, the minister
encouraged private enterprises to set up joint ventures with
Nigerian businesses.
He said Chinese enterprises are good at oil exploration
technology and infrastructure construction, adding that his country
is also seeking partnerships with countries such as India and South
Korea.
Imports from Africa currently account for more than 30 percent
of China's imported oil. With coal being the major source of
energy, less than 30 percent of the energy demand is met by
oil.
Ajumogobia said current high oil prices, which jumped to nearly
US$100 a barrel this month, were the result of a number of factors
such as refinery constraints, the mortgage market turmoil in the US
and the weak dollar.
"In the long run, the high prices might suppress demand it is
OPEC's core function to maintain the equilibrium between supply and
demand," the minister said.
Algerian Energy Minister Chakib Khelil, agreed: "We have seen
slackening of demand in the US and China." But he said he believes
oil prices would remain at current levels until the end of the
first quarter next year and were unlikely to go over US$100 a
barrel.
OPEC holds that China is not the driving force behind current
high prices despite the fact that it forecasts Chinese and Indian
demand to contribute significantly to the 40 percent demand growth
by 2030.
(China Daily November 19, 2007)
