Saturday, July 28, 2007

China Is At It Again............


“China is building another ally,” reports Jim Nelson.
“The Chinese have been building up the infrastructure of the poverty-stricken country of East Timor,” says Jim. “Maybe it’s because it’s a friendly nation. Or maybe it’s because it wants access to the billion-plus barrels of oil found offshore...”
The oil, which is found in an area called the Timor Gap, has been in dispute between the government of Australia and Indonesia for years.

“Despite a revenue share deal signed in 1999, Australia has simply taken the oil for itself,” Jim tells us. “One of these drilling sites has produced about $2 billion of disputed royalties.”
In turn, the Timorese have turned to the Chinese for help. Or some version of that story. “China’s mega oil producer, PetroChina, has already gained a contract for East Timor’s stake in this area. Even if revenues were fairly split between the three countries, the $250 million a year that is rightfully Timor’s will go to China, including all of the oil.”

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