Download 幻灯片 1 - Wilson Center

Sino-Latin American Energy
Cooperation Models
Dr.Sun Hongbo
Institute of Latin American Studies
Chinese Academy of Social Sciences
Woodrow Wilson International Center
May 26, 2010
• How do the Chinese national oil
companies and the Chinese government
view further investment in Latin America?
• Are there obstacles?
• What are the expectations for the future?
• Are the Chinese NOCs concerned about
political risk?
The dynamic roles in Sino-Latin
American energy cooperation
• Strong Economic Growth
• NOCs √
• Governments
• Financial Organizations √
Strong Economic Growth
NOCs
Governments
Financial
Organizations
Go Globally
Go Globally
Local Market
Profit-making
Energy Security
Local Market
Cooper Promoting
Financial Service
Policy Service
Profit-making
Cooperation Models
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Technical Service Model √
Joint Development Model
Infrastructure Building Participation Model √
Loans for Oil Model
Bio-fuels Technology Joint Research Model
How importance of Latin America for China’s
energy security?
• Latin America only accounts for 7.58% in
China’ total crude oil importing around the
world in 2008, according to BP Statistical
Review of World Energy June 2009.
• It is difficult to image that Latin America will
become a highly strategic region for China’s
energy security needs.
China Oilfield Services in Mexico
Sinopec and PetroChina in Ecuador
China-Venezuela Energy Cooperation
Sinopec in Columbia
Cooperation Programs by Country
Exploration Development
Service Contract
Loans for oil
Peru
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Venezuela
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Ecuador
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Columbia
Brazil
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Mexico
Argentina
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• CNPC has been present in Peru since 1993 and
now owns a risk exploration block and two
production blocks in the country's Talara Oilfield,
while also providing oilfield services.
CNPC owns the risk exploration Block 111/113 and
production blocks 1-AB/8 and 6/7 in Peru's Talara
Oilfield.
• China’s Expansion of Contracting Engineering in
Mexico
By the end of 2007, the total amount of China’s
contracting engineering services was of 1.264 billion
USD, with a total turnover operation amount of 1.819
billion US dollars.
There are 3 important oil companies with contracting
engineering services in México now. Their main
business are to provide services for oil projects and
the operation of drill machines.
• The Great Potential in China-Columbia Cooperation
for Petroleum and Petrochemical Industry
The investment to Columbia petroleum exploration
and production by China's petroleum companies has
become the new spot with more and more attentions
of the two countries.
MECL (Masarovar Energy Columbia Ltd.) is a joint
venture company of Sinopec International Petroleum
Exploration & Production Corporation and OVL
Corporation of India.
• Sino-Venezuelan energy cooperation is an important
component of bilateral cooperation.
Thanks to the support the two governments and the
joint efforts of enterprises, both sides have deepened
fruitful cooperation in oil exploration and
development, engineering technology services,
trading, transportation and refining, etc.
• Great Potential in China-Ecuador Energy Cooperation
The subordinate enterprises of Sinopec and
PetroChina are playing a very important role in the
cooperation with Ecuador in the field of energy. They
have created many new drilling records when
providing the exploration and drilling services for
Ecuador and other foreign petroleum companies.
On February 28, 2006, Andes Petroleum Company,
the joint venture of Sinopec and PetroChina,
purchased all the oil and gas assets of Canada Encana
Company in Ecuador successfully.
• The joint action plan 2010-2014 between China and
Brazil states that the two sides agree on the great
potential in investment cooperation in the energy
sector.
The two sides will promote and extend the two
countries’ cooperation in oil trade, oil exploration
and development, financing, engineering services
and equipments.
China and Brazil will cooperate in developing new
sources of energy, in particular renewable ones (wind,
solar, hydropower and biofuels and biomass).
Opportunities for Future
For China’s part
• (1) High Economic Growth
• (2) China’s NOC Investment Capacity
• (3) NOC’S Localization Experiences √
For Latin American Part
• (1) To keep energy industry open
• (2) Insufficient investment in exploration,
development and refinery
• (3) Political Willingness √
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Challenges for China’s NOCs
Policy Uncertainty
Regulatory Framework
Social Risks
Intense Market Competition
Environmental Clauses
Transportation Costs
Technology of refinery
U.S Response ?
Thank You