Chinese Petroleum Corp (
CPC and China National Offshore Oil Corp (CNOOC,
The agreement paves the way for both state firms to jointly develop the Chaoshan block in the open seas about 140km from the southern port city Kaohsiung.
"As far as I know it's the first large-scale cooperation between two state-owned enterprises across the strait," said CNOOC President Wei Liucheng (
The agreement was the second major commercial deal involving state-controlled companies. China Eastern Airlines signed a pact last year to sell a 25 percent stake in its cargo unit to Taiwan's China Airlines Co (
CNOOC, parent of listed CNOOC Ltd, has received Beijing's approval for the project, which calls for the establishment of a 50-50 joint venture.
Chinese Petroleum and CNOOC had conducted a geophysical survey of the 15,400km2 block in 1996 and found the area likely to have oil and gas. Whether the block contains any natural gas or oil requires actual exploration.
"The signing of the oil deal means our cooperation on oil exploration has moved from joint study to joint investment. In the next stage, we will move from joint investment to joint development," Chinese Petroleum Chairman Regis Chen (
The Mainland Affairs Council had dragged its feet on approving the deal but gave the green light last month.
Chinese Petroleum was reluctant to play up the signing ceremony, apparently worried that cooperation in the strategic energy sector would send the wrong signals to Taiwanese businessmen pressing the government to further ease curbs on mainland-bound investments.
"The two sides had hoped for a breakthrough on the economic fronts, but issues such as ideology, titles, and `one China' always stood in the way," said Chen Ming-chang (
"Speaking purely from the business point of view made things a lot easier," Chen said, adding that economic integration would improve the political climate.
Chinese Petroleum and CNOOC officials avoided politics at the signing ceremony, stressing the deal was "equal and mutually beneficial."
"A deal of such significance can't go ahead unless authorities on the two sides agree," CNOOC's Wei said.
"We share the same culture, the same language and the same work habits. I think the cooperation will be pleasant and smooth."
Fence-mending talks between Taipei and Beijing have deadlocked since July 1999, when then president Lee Teng-hui (李登輝) redefined bilateral relations as "special state to state" in an attempt to break Taiwan out of diplomatic isolation.
Mounting pressure from Tai-wan's private sector forced the government to ease last month a ban on microchip makers building plants in China. But tough conditions were attached.
Chinese Petroleum has been aggressively exploring investment opportunities to cope with rising competition since 2000, when the government allowed a private company to enter the country's oil market, ending the oil giant's decades-old monopoly.
It faced a further threat to its dominance in the local market after the government lifted curbs on oil product imports this year.
Chinese Petroleum has also been in talks with China National Petroleum Corp to refine crude for China's biggest oil-and-gas producer as part of efforts to use idle capacity due to a supply glut at home. Officials declined to comment on the talks.
BACK IN THE NEIGHBORHOOD: The planned transit by the ‘Baden-Wuerttemberg’ and the ‘Frankfurt am Main’ would be the German Navy’s first passage since 2002 Two German warships are set to pass through the Taiwan Strait in the middle of this month, becoming the first German naval vessels to do so in 22 years, Der Spiegel reported on Saturday. Reuters last month reported that the warships, the frigate Baden-Wuerttemberg and the replenishment ship Frankfurt am Main, were awaiting orders from Berlin to sail the Strait, prompting a rebuke to Germany from Beijing. Der Spiegel cited unspecified sources as saying Beijing would not be formally notified of the German ships’ passage to emphasize that Berlin views the trip as normal. The German Federal Ministry of Defense declined to comment. While
‘REGRETTABLE’: TPP lawmaker Vivian Huang said that ‘we will continue to support Chairman Ko and defend his innocence’ as he was transferred to a detention facility The Taipei District Court yesterday ruled that Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) be detained and held incommunicado over alleged corruption dating to his time as mayor of Taipei. The ruling reversed a decision by the court on Monday morning that Ko be released without bail. After prosecutors on Wednesday appealed the Monday decision, the High Court said that Ko had potentially been “actively involved” in the alleged corruption and ordered the district court to hold a second detention hearing. Ko did not speak to reporters upon his arrival at the district court at about 9:10am yesterday to attend a procedural
The High Court yesterday overturned a Taipei District Court decision to release Taiwan People’s Party Chairman Ko Wen-je (柯文哲) and sent the case back to the lower court. The Taipei District Prosecutors’ Office on Saturday questioned Ko amid a probe into alleged corruption involving the Core Pacific City development project during his time as Taipei mayor. Core Pacific City, also known as Living Mall (京華城購物中心), was a shopping mall in Taipei’s Songshan District (松山) that has since been demolished. On Monday, the Taipei District Court granted a second motion by Ko’s attorney to release him without bail, a decision the prosecutors’ office appealed
The Executive Yuan yesterday warned against traveling to or doing business in China after reports that Beijing is recruiting Taiwanese to help conceal the use of forced Uighur labor. The government is aware that Taiwan-based influencers and businesses are being asked to make pro-Beijing content and offered incentives to invest in the region, Executive Yuan acting spokeswoman Julia Hsieh (謝子涵) told a news conference. Taiwanese are urged to be aware of the potential personal and reputational harm by visiting or operating businesses in China, Hsieh said, adding that agencies are fully apprised of the situation. A national security official said that former Mainland
RSS