Taipei - Taiwan's Chinese Petroleum Corp (CPC) and China's China National Offshore Oil Corp (CNOOC) signed pacts Friday on joint oil and gas drilling projects in Kenya and the Taiwan Strait. The three agreements cover: the extension of an existing pact on joint drilling for oil and gas at the southern end of the Taiwan Strait; joint drilling for oil and gas near the Nanjihdao Island at the northern end of the Taiwan Strait; and joint drilling for oil in Kenya.
Quoted by Taiwan's Central News Agency (CNA), Cao Xiaohen, a researcher from China's Nankai Univeristy, said the agreement signaled a breakthrough in ties between Taiwan and China.
"Up until now, all the companies that have invested in China are private enterprises. But both CPC and CNOOC are state enterprises. Besides, oil is strategic natural resources, so the two sides' cooperation in this field has great symbolic significance," he said.
Regarding the Kenya part, CNOOC will allow CPC to join CNOOC in exploring for oil in the Anza Basin, which covers 27,778 square kilometres in northern Kenya.
Under the agreement CNOOC will retain 40 percent of its investment in Kenya. Another 30 per cent will be held by OPIC Char Corp, a CPC affiliate. The remaining 30 per cent will be held by Lundin of Sweden. CNOON will be in charge of oil exploration.
CNA reported that more cooperation deals, including one to allow CPC to refince crude oil for CNOOC, between the companies remain on the table.
The signing of the oil pacts comes 10 days after Taiwan and China launched direct sea, air and postal links, in line with President Ma Ying-jeou's policy of improving ties and promoting economic cooperation with China.
