MOFA says it is working to diversify energy supply

Securing energy supply sources for Taiwan is an integral part of the nation's diplomatic work, Ministry of Foreign Affairs (MOFA) spokesman Michel Lu (呂慶龍) said yesterday.

Lu responding to a media report that the National Security Council and MOFA have formed a special task force, known as the Taiwan-Africa panel, to evaluate the feasibility of investing in oil exploration in major African oil-producing countries, including Angola, Nigeria and Chad.

In the face of China's global oil shopping spree, the media report said, the government has stepped up planning for possible overseas oil exploration cooperative projects to prevent China from threatening Taiwan's energy supply stability.

According to the report, the government intends to further expand its overseas investments in oil exploration, hoping to exploit potential oilfields in West Asia, South America and Africa.

Over the years, Taiwan has traditionally invested in overseas oil exploration or has made direct investments in existing oilfields through its state-owned enterprises, such as Chinese Petroleum Corp. (CPC) and Taiwan Power Co, to ensure stable energy supplies. Most of those cooperative projects are located in the Middle East and Southeast Asia.

In recent years, CPC has expanded its targets to South America and Africa.

Among Taiwan's seven diplomatic allies in Africa, Chad is rich in petroleum reserves, particularly in its Sedigui and Doba areas.

According to the media report, CPC has set aside a large amount of money in this year's budget for cooperating with the Chadian government in prospecting for oil there.

The report said China has also intensified lobbying Chad to cooperate with it in oil exploration in the Sedigui and Doba areas.

Commenting the report, Lu said Taiwan has reached an initial consensus with the Chadian government on CPC participation in oil exploration.

However, Lu said, the two sides have yet to work out a concrete cooperative project because of a combination of problems, including commercial terms, the Chadian government's considerations and China's sabotage by offering far more lucrative financial incentives.

Lu MOFA is well-informed about China's strategy and will make every possible effort to realize various cooperative projects with Chad, including oil exploration.