China drills while leaving others to kill

• Source: Global Times
• [03:18 November 06 2009]
• Comments

The country's largest oil and gas producer and supplier, China National Petroleum Corporation (CNPC) and British oil giant BP Plc, signed on Tuesday Iraq's first major new oil deal.

By Qiu Wei

China is being accused of shoring up mega energy deals in oil- and mineral-rich Iraq and Afghanistan while contributing little to international security concerns, an issue that is being debated in Western media outlets whose countries are entrenched in war zones.

Chinese experts say that the accusations reflect "jealousy" toward China's overseas resources expansion, as the US and Britain have been used to dominating the world's oil supply.

"As the US and Britain look for an exit from the battle zones, China is digging in," an article in London's The Times newspaper said Thursday, adding that "to many in Washington, it looks as if China is winning the benefit of the struggles of the US and its allies."

It was similar in tone with an opinion piece in The New York Times said October 7.

"The problem is that while America is sacrificing its blood and treasure, the Chinese will reap the benefits," it said.

The voices came as Chinese State-owned energy powerhouses won major deals in the countries, as Beijing has stepped up its efforts to secure and diversify its inbound energy flow to fuel the soaring demand driven by rapid economic growth.

The country's largest oil and gas producer and supplier, China National Petroleum Corporation (CNPC) and British oil giant BP Plc, signed on Tuesday Iraq's first major new oil deal since the 2003 US invasion, snapping up a development contract for the Rumaila oilfield, one of the world's biggest.

BP and its Chinese partner expect to increase Rumaila's output to 2.85 million barrels per day, almost tripling the current 1 million barrel per day output, the AP reported.

Western envy

Zhao Gancheng, at the Shanghai Institute for International Studies, said a stereotypical mentality that dominates in some Western countries is a problem.

"Some always insist that the world's natural resources should only serve the demands of Europe and the US, as they have exclusive rights," Zhao said.

Jin Canrong, deputy head of the International Relations Institute at the Remin University of China, said that the Iraqi government was not likely to sign a contract with a Chinese company without the permission of the US.

"It indicates the US' consent with China's role in rebuilding Iraq," he said.

Yin Gang, a Middle East expert at the Chinese Academy of Social Sciences, admitted that US-led allies have invested more in the Iraq war, but China has been gaining a lot from the peace welfare and operation, including oil trade.

"I found the foreign countries' complaints understandable, as it does threaten their interests," Yin said.