China- Saudi Arabian oil deal on the rocks

A 20-mln-ton oil depot project between Saudi Arabia and China in the southern province of Hainan has been suspended, due to hesitation on the Saudi side, an official with the Hainan provincial government told Interfax on Thursday. In the run up to an official visit by Saudi King Abdullah specualtion has been rife as to the future of the deal.

“We have reached a general cooperation memorandum at the end of 2002, however the Saudi side has neither recommended any specific Saudi investors nor paid a visit to Hainan yet, which seems that they do not have any sincerity,” an official with Hainan Provincial Development and Reform Commission said, who requested to remain anonymous.

Interfax