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China signs oil deal with Saudis
By Qin Jize (China Daily)
Updated: 2006-01-24 05:59

China and Saudi Arabia signed five agreements yesterday, including one on increased co-operation in oil, natural gas and mineral deposits.

The deals were signed during a visit by Saudi King Abdullah bin Abdul-Aziz, 82, who arrived in Beijing on Sunday on his first official overseas tour since taking the throne in August.

China and Saudi Arabia signed five agreements yesterday, including one on increased co-operation in oil, natural gas and mineral deposits.
President Hu Jintao (R) shakes hands with King Abdullah of Saudi Arabia during a welcoming ceremony at the Great Hall of the People in Beijing January 23, 2006. [Xinhua]

Specifics of the oil deal were not immediately available.

The four other pacts covered a wide range of fields such as trade, loans and avoidance of double taxation.

President Hu Jintao and the king oversaw the signing of the deals after an hour's meeting at the Great Hall of the People. Both sides promised to take advantage of their growing oil business to further develop a broader economic and diplomatic partnership.

"China is willing to improve the dialogue and the method of co-operation on energy with Saudi Arabia to raise the level of energy co-operation," Hu said, adding that closer co-operation in the fields of infrastructure construction and telecommunication is also under way.

Saudi Arabia is China's largest trading partner in the region comprising the Middle East and northern Africa.

Saudi Foreign Minister Prince Saud al-Faisal told reporters before the welcoming ceremony that China is one of the most important markets for Saudi oil.

Currently, the country supplies 14 per cent of China's oil imports, or 450,000 barrels a day. In the first 11 months of last year, China imported around 20.01 million tons of crude oil from Saudi Arabia.

The prince said the energy deal will set a framework for investment, but actual deals would have to come from companies. He added that extensive contacts exist between companies from both sides.

Abdullah's visit is the first tour of a Saudi king to China since the two countries established diplomatic relations in 1990. The visit has showed Saudi Arabia's emphasis on strengthening ties with China, Hu said.

The king is scheduled to meet top legislator Wu Bangguo and Premier Wen Jiabao today before heading for New Delhi.

(China Daily 01/24/2006 page1)



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