The oil and gas industry has no doubt why Chinese President Hu Jintao visited Saudi Arabia last week. But his presence in four small African countries—Senegal, Mali, Mauritius, and Tanzania—was another matter.
Hu’s visit to the four African countries supposedly had little, if anything, to do with his country’s interests in oil or gas or, for that matter, any commodity.
“Perhaps everybody thinks that on President Hu’s visit to Africa he’ll sign this or that deal or contact about energy or mining,” Assistant Foreign Minister Zhai Jun told a news conference.
“Of the five countries on the itinerary for Hu’s trip this time, apart from Saudi Arabia, the four African nations are not rich in energy or resources,” he said. Huh? That doesn’t jibe with Western reports.
Zeus speaks
“From Senegal around the Cape of Good Hope to Tanzania, investors are developing reserves to supply power producers in need of cheaper fuel as well as international LNG and chemical markets suffering from supply shortages,” said Bob Nimocks, chief executive officer of Zeus Development Corp., Houston.
Senegal? Houston-based Fortesa International is aiming to discover oil and more condensate, targeting the Albian, Aptian, and Turonian formations in and beyond its gas producing Gadiaga block.
Mali? Eni SPA last month said it plans to commence a five-well drilling campaign in Mali’s Taoudeni basin in the second quarter.
Mauritius? While no oil or gas has yet been produced on or offshore the tiny island nation, it is a regional hub for the industry as evidenced by the number of firms registered there: Ind-Oil Overseas Ltd., Libya Oil Holdings Ltd., Sohi Oil & Gas, and Swiss Oil.
Location, location, location
The operative word in Mauritius is: Location, location, location. That is especially true for the Chinese. After all, Mauritius is close to Madagascar where several Chinese oil firms already are at work (OGJ, Feb. 2, 2009, p. 34).
That proximity to Madagascar is key, according to Ken Poonoosamy, senior manager at Mauritius’ board of investment: “A lot of the Chinese operators who would want to go to Madagascar…would prefer to have their administrative offices” in the Shanxi Tianli Enterprises business park, a $730 investment project funded by the Chinese government.
Tanzania? Well, just ahead of Hu’s visit allegations emerged that Tanzania Petroleum Development Corp. offered the China’s Sonangol International rights for exploration in western Tanzania “outside” the normal tendering process.
In return, local media reported, the Chinese injected $21 million dollars into Air Tanzania Corp., which was used to help purchase two used Bombardier 70-seater Dash 8 Q400 turboprop aircraft from Bombardier Aerospace Inc. of Canada.
Believe it or not, Hu, the oil and gas industry really does operate in those four “resource-poor” African countries you visited.
