Mon Dec 21, 2009 2:42am GMT
BEIJING, Dec 21 (Reuters) - China's top oil and gas firm CNPC said it has received exclusive rights to build and operate the China-Myanmar crude oil pipeline, securing political assurance for the project from the military-ruled Myanmar government.
Witnessed by China's Vice President Xi Jinping and Maung Aye, vice-chairman of Myanmar's State Peace and Development Council, a CNPC executive and a representative from Myanmar's energy ministry signed the deal on Sunday that awards exclusive rights to CNPC controlled Southeast Crude Oil Pipeline Company.
The CNPC unit will also enjoy rights including tax abatement, crude oil passing through Myanmar's territories, customs clearance and road operations, CNPC said in a report on its website (www.cnpc.comc.cn).
The Myanmar government will guarantee pipeline safety and the ownership and franchise right of the pipeline by Southeast Crude Oil Pipeline Company, the report said.
The report did not say what or how much benefit the military junta would receive from the project.
CNPC, parent of PetroChina (601857.SS)(0857.HK)(PTR.N), started building a crude oil port in Myanmar on Oct. 31, which is part of the 771-kilometre pipeline project aimed at cutting out the long detour that many Chinese oil cargoes take through the congested Malacca Strait. [ID:nPEK34572] (Reporting by Jim Bai and Chen Aizhu, Editing by Jacqueline Wong)
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Source: http://uk.reuters.com/article/idUKTOE5BK01N20091221
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