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China petroleum firm to set up logistics hub in Dubai

China petroleum firm to set up logistics hub in Dubai

China National Petroleum Corp (CNPC), the country's largest oil and gas producer, is planning a logistics hub in Dubai to minimise possible disruptions from geopolitical risks in the Middle East and North Africa, the China Daily reported on Tuesday.


February 21, 2012 4:37 by

CNPC, state-owned parent of PetroChina Co Ltd , plans to build an industrial park of 200,000 square meters in Dubai’s Free Zone, with production lines for engineering equipment, the newspaper said, citing a CNPC source with direct knowledge of the issue.

It said the company would use the park as an equipment store in the event of an emergency withdrawal from the Middle East and North Africa.

CNPC has a strong presence in the region, developing large oilfields from Iraq to Sudan. When unrest emerged in Libya early last year, CNPC halted production, sealed equipment in the North African country and evacuated its 391 Chinese employees after some project camps and operating sites were attacked.

Equity oil output from overseas projects operated by CNPC topped a record 1 million barrels per day last year, in line with targets. (Reporting by Judy Hua and Ken Wills; Editing by Chris Lewis) *image from alroyya


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