Tuesday, May 25, 2010

West Africa to become China's key source of crude oil


Figures released by General Administration of Customs of China shows Angola remained China's largest source of crude oil in April and exported 4.3 million tons of crude oil to China, up 181 percent compared to the same period last year.

In April, Saudi Arabia ranked second with 3.1 million tons of crude oil exports to China, down 14.8 percent. Iran ranked third with 1.7 million tons, declining 21.2 percent.

Liao Na, a spokesperson for C1 Energy Co., Ltd. said over 50 percent of China's oil imports were from the Middle East in the past, while most of this area is controlled by the United States and Europe. So oil supply in this region is unstable and energy security can not be ensured due to political reasons.

The situation in West Africa is different from that of the Middle East. The relationship between China and West Africa is more stable than the one between China and the United States or China and Europe, said Liao.

In addition, most of China's projects in Africa are investment projects and the loan-for-oil program can ensure the oil supply. Furthermore, the cheaper oil prices and freight charges in West Africa are also advantageous conditions.

With the diversity of China's imports, Liao believes, besides West Africa, China will increase imports of oil from regions of the Caspian Sea and South America and other regions.

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