Chinese private companies will soon finalise deals with their Pakistani partners to make investment in petroleum and natural resources sector, said sources with China Chamber of Commerce for Petroleum Industry (CCPI). The CCPI will send a delegation to Pakistan later this year to finalise their ongoing negotiations in the energy sector.
The sources told newsmen here on Saturday that the Chinese companies were encouraged by economic and investment policies of the present government in Pakistan and prepared to undertake joint ventures in the oil and coalmine sectors.
According to CCPI Secretary General Wang Junjue, the deals varied from joint oilfield development to coalmine investment, adding that it would be a breakthrough for private domestic oil companies on the overseas market.
Nearly 30 initial agreements were signed by China's private oil companies and their Pakistani counterparts during a forum held in Islamabad April this year. These agreements cover investment in oilfields, oil refineries, coal-fired power plants and hydropower projects.
The two sides also discussed a possible oil pipeline from Pakistan's Gwadar Port to China's Xinjiang and building up oil storage and refining facilities at the port. The oil pipeline proposal was made in a general co-operation agreement reached by the two governments during President Pervez Musharraf's official visit to Beijing in February.
The two countries have also proposed at the forum to establish an international joint fund to support the development of energy projects by Chinese private oil companies in Pakistan.
According to the informed sources, the Chinese petroleum industry has indicated an interest in shifting its excess capacity to Gwadar.
The CCPI and All China Federation of Industry and Commerce (ACFIC) conveyed to Pakistani authorities during a recent visit that the Chinese petroleum industry is keen to invest in Pakistan's energy sector.
The ACFIC and CCPI indicated that both the public and private were willing to cooperate in energy projects in Pakistan. This co-operation will not be restricted to building an oil pipeline to set up an energy corridor to Gwadar, but also in shifting energy related industry to Pakistan.
However, the government would need to provide strong support to lay down a framework for a safe financial, investment and security environment in Balochistan to attract this investment, the sources said.
The Chinese petroleum industry sees four potentially fruitful projects.