Saudi king arrives in China to discuss energy
(AFP/AP)
Updated: 2006-01-23 09:57

Saudi King Abdullah arrived in China Sunday to begin a four-day visit in which he will discuss oil and energy security with Chinese leaders.

Saudi King Abdullah (C) is helped into his car by a Chinese PLA soldier after arriving in Beijing Juanuary 22, 2006, to begin a four-day visit in which he will discuss oil and energy security with leaders of the world's top oil consuming nation. [AFP]

King Abdullah, who took over the helm of the Gulf kingdom from the late king Fahd in August, arrived around 1:00 pm (0500 GMT) and was welcomed at Beijing airport by Foreign Minister Li Zhaoxing.

He was scheduled to meet Chinese President Hu Jintao on Monday, where he was expected to sign agreements on energy cooperation and trade, reports said.

The visit is part of the king's first tour outside the Middle East, which will include stops in India, Malaysia and Pakistan, since succeeding to the throne on the death of king Fahd.

The Chinese foreign ministry said King Abdullah would discuss oil and energy security when he meets Hu.

Ministry spokesman Kong Quan said two-way trade between China and Saudi Arabia rose by 39 percent to US$14 billion between January and November 2005.

He said China had imported 20.1 million tonnes of oil from Saudi Arabia, the world's number one oil exporting country which sits on more than a quarter of global reserves.

Kong said the visit would be the first by a Saudi king since the two nations established diplomatic relations in 1990.

China, the world's No. 2 oil consumer, has been aggressively seeking to strengthen relationships with major oil suppliers as it grows more heavily reliant on oil imports.

An agreement to be signed during Abdullah's visit would call for increased cooperation and joint investment in oil, natural gas and mineral deposits, the Dow Jones financial newswire reported.

Abudullah was also scheduled to meet with China's parliament speaker Wu Bangguo and Premier Wen Jiabao, on Tuesday.

Saudi Arabia accounts for about 17 percent of China's imported oil.

The king was due to visit India on January 25, Malaysia on January 29 and Pakistan in early February.

The report did not specify any financial details and the Saudi Embassy in Beijing said it had no information on the King's visit.

Chinese, Saudi groups plan new oil company

Three Saudi companies announced last week that they are about to complete forming a joint-stock petrochemical company with a Chinese partner, Arab News reported.

The Saudi group announced that part of the $1.76 billion company's capital will be offered in an initial public offering (IPO) and the rest will be distributed among the three companies and their Chinese partner, and the three Saudi companies are MIDROC, Sara Development Co. and House of Invention (HOI) Co.

The new company is set to establish an $6 billion petrochemical complex in the Jubail Industrial City, located in Eastern Province, and is expected to create 2,500 new jobs for Saudi nationals.

The production capacity of the new complex is expected to be two million tons of basic and secondary petrochemical products annually.