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Chinese security minister inks cooperation pact with Saudis

Chesapeake sells Texas assets to China's CNOOC
New York (AFP) Oct 11, 2010 - US gas company Chesapeake Energy said it had reached a deal with China's CNOOC to sell about a third of its interest in the Eagle Ford Shale project in South Texas for 1.08 billion dollars. CNOOC has agreed to fund 75 percent of Chesapeake's share of drilling and completion costs until an additional 1.08 billion dollars has been paid, company officials said on Sunday. The deal is expected to be finalised by the end of the year. Chesapeake is expected to continue managing the project, conducting all leasing, drilling, operation and marketing activities. Over the next several decades, the companies plan to produce in the area up to four billion barrels of oil.

Chesapeake is currently operating 10 rigs in its Eagle Ford leasehold, but with the additional capital from CNOOC Limited, it anticipates increasing its drilling activity to approximately 12 operated rigs by year-end 2010 and approximately and approximately 40 rigs by the end of 2012. About 900 wells are expected to be drilled by year-end 2012. Chesapeake anticipates the project will reach its peak production of 400,000-500,000 barrels of oil equivalent per day in the next decade, officials said. "This transaction will provide the capital necessary to accelerate drilling of this large domestic oil and natural gas resource, resulting in a reduction of our country's oil imports over time, the creation of thousands of high-paying jobs in the US and in the payment of very significant local, state and federal taxes," said Chesapeake chief executive officer Aubrey McClendon.
by Staff Writers
Riyadh (AFP) Oct 11, 2010
China and Saudi Arabia have agreed to set up a joint security commission, in the latest sign of growing ties between the two countries, the kingdom's official SPA news agency reported on Monday.

Public Security Minister Meng Jianzhu and his counterpart Interior Minister Prince Nayef bin Abdul Aziz signed a letter of intent late Sunday on security training and exchanges.

They also agreed to form a joint body of "high-level security officials" to boost cooperation in the field, SPA said.

Meng and a large entourage of senior Chinese security and counter-terror officials met with King Abdullah, Prince Nayef and other senior Saudi officials on Sunday on the second of a three-day trip to Saudi Arabia.

Earlier, Meng visited the Nayef Arab University for Security Sciences for talks on cooperation with Chinese institutes, and he was scheduled on Monday to hold talks with Saudi intelligence chief Prince Muqrin bin Abdul Aziz.

The visit underscored the improvement in political and economic relations between the two countries since Abdullah became king in August 2005.

Abdullah's first trip abroad was to China, and he was the first Saudi king ever to visit the Asian giant, in a move which symbolised the king's push to diversify Saudi alliances away from its traditional US and British partners.

Since then China has become the kingdom's largest customer for oil and a key partner in petrochemicals as well.

Last Thursday, Meng signed a pact with the United Arab Emirates deputy prime minister, Sheikh Saif bin Zayed al-Nahayan, on counter-terror and crime-fighting cooperation, the UAE news agency WAM said.

earlier related report
'Sensitive' South China Sea not on defence agenda: Malaysia
Hanoi (AFP) Oct 11, 2010 - The South China Sea is a sensitive issue that is not on the formal agenda for inaugural talks between defence ministers from Asia and the United States, Malaysia said Monday.

"We haven't discussed it yet and I believe South China Sea problems are a little bit sensitive not only for Vietnam but also in some other neighbouring countries," Malaysian Defence Minister Ahmad Zahid Hamidi told reporters.

He was speaking on the sidelines of talks by defence ministers from the 10-member Association of Southeast Asian Nations, ahead of wider ASEAN-led defence talks that include China on Tuesday.

"It really is not on the agenda. If the matter arises over the South China Sea I reckon our stand is to work together" and have "non-emotional dialogue," he said.

The talks are being led by the current ASEAN chair Vietnam.

Vietnam and China are engaged in a long-running dispute over control of the Paracels and a more southerly archipelago, the Spratlys, both of which are in the South China Sea.

Since last year Vietnam has reported numerous cases of fishing boats and equipment being seized by China in the disputed waters.

Taiwan also claims the Paracels and has a claim to the Spratlys, as do ASEAN members the Philippines, Malaysia and Brunei.

At a meeting of regional foreign ministers in July, US Secretary of State Hillary Clinton said resolving disputes over the South China Sea is "pivotal" to regional stability. Other delegates also raised the matter, sparking anger from China, diplomats said.

They said there has been Chinese pressure for this week's meeting to avoid discussion of the South China Sea.



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