SA Threatens To Cut Off Oil Shipments To Taiwan Over Investment Spat - Khaleej Times

[hatrack]

TAIPEI - Saudi Arabia has threatened to halt oil exports to Taiwan over Taipei's reluctance to invest in Saudi Arabia's power and water desalination plant, a report said Monday. Sudi Arabia feels cheated by Taiwan's delay to invest in the Independent Water & Power Provider (IWPP) project and has threatened to suspend oil exports to Taiwan, the United Daily News (UDN) reported.

Saudi Arabia supplies 100 million barrels of oil to Taiwan annually, accounting for half of all oil imports. ‘If Saudi Arabia stops oil import to Taiwan for two weeks, Taiwan will face an oil crisis,’ the paper said.

But the state oil monopoly Chinese Petroleum Corp (CPC) denied knowledge of Saudi Arabia's threat to stop oil exports and believed it was unlikely to happen. ‘CPC's deals with Saudi Arabia are carried out according to the terms and obligations of the contract, and will be not obstructed by other investment deals or be unilaterally terminated,’ CPC said in a statement.

‘CPC signed the purchase contract with Saudi Arabian state oil firm ARAMCO. ARAMCO is an international enterprise with good international reputation. Over the past dozens of years, CPC has enjoyed good interaction with ARAMCO. Unilateral termination of the contract has never happened and will not happen,’ it said.

EDIT

http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2008/May/business_May422.xml§ion=business&col=

[kristopher]

1. What's the relevancy of this type post?

Does every news/environemnt story around the world really need to find it's way to this board?

[phantom power]

2. Just the ones involving energy and/or environment.

Mister Grumpy Gills.

[kristopher]

3. Cute

And tasty looking too...

Don't get me wrong, I enjoy variety of input, but a little judgment goes a long way.

[phantom power]

4. I, for one, typically like hatrack's judgement in articles.

On those occasions when somebody posts something I don't find that interesting, I take the radical step of not clicking on it, or maybe even using those little black (x) buttons and sticking it on my ignore list.

[Nihil]

5. In this case, the relevancy is highlighted by one paragraph:

> Saudi Arabia supplies 100 million barrels of oil to Taiwan annually,
> accounting for half of all oil imports. ‘If Saudi Arabia stops oil
> import to Taiwan for two weeks, Taiwan will face an oil crisis,’
> the paper said.

It is also drawing attention to the powerful blackmail that the major
oil producers can indulge in: "Support our projects or else ...".

"Embargo on!"

[hatrack]

6. Update - Taiwanese Deputy Economics Minister Denies Saudi Threat - China Post

TAIPEI, Taiwan -- A deputy economics minister yesterday dismissed a report that Saudi Arabia might cut oil supplies to Taiwan in retaliation for a possible suspension of investment in the Middle East nation's independent water and power production (IWPP) project. "I've never heard of this," said Hsieh Fa-da during a hearing of the Economics Committee of the Legislative Yuan, adding such a retaliatory measure would be "impossible" based on his knowledge of Taiwan's business dealings with Saudi Arabia.

Hsieh made the remarks after the United Daily News yesterday reported Saudi Arabia did not rule out launching retaliatory measures over a possible suspension of investment by Taiwan Power Co., Taiwan Water Corp. and Taiwan Cogeneration Corp. in the country's IWPP project.

The three companies will likely miss the Jun. 2 deadline for submitting bids, the report said, as the Taiwan Cabinet has now entered a transitional period prior to the inauguration of President-elect Ma Ying-jeou and a new Cabinet on May 20.

The Ministry of Economic Affairs, meanwhile, said the Legislative Yuan should decide whether investment in the project should be made, the report said. In the hearing yesterday, Hsieh stressed oil procurement and IWPP investment were two separate issues and should not be linked together. "Even if we suspend investment in the country's IWPP project, it would not impact Taiwan's procurement of oil from Saudi Arabia," he said.

EDIT

http://www.chinapost.com.tw/business/asia/%20taiwan/2008/05/13/156189/MOEA-dismisses.htm