A Sino-Egyptian joint oil rigs plant was set up Wednesday in Suez northwestern industrial zone, about 120km east of Cairo.

This is the first land oil rigs plant in the Middle East region. Officials from China and Egypt laid foundation stone for the joint venture.

The Chinese side of the joint venture was Sichuan Honghua Petroleum Equipment Co., Ltd while the Egyptian side was three companies, which included an engineering company of oil and oil processing, an oil consultation company and a petroleum company.

According to their contract, the two sides each invested 15 million U.S. dollars and the joint venture will manufacture three oil drills by 2007 and 53 in the coming four years (2008-2011).

Egyptian Minister of Petroleum Amin Sameh Samir Fahmi told Xinhua that the joint project is a successful story. He expected more Chinese investments in the oil sector as bilateral cooperation is practical and mutual benefit.

Fahmi also expressed Egypt's keenness to learn China's technology and developing experience to promote Egypt's social and economic progress.

In the meantime, Chinese Ambassador to Egypt Wu Sike praised the progress that the joint venture has made, reviewing that the memorandum of understanding was signed last October, the contract signed in last December and only half a year later, the venture can begin to produce drills.

According to statistics from China's customs, trade volume between the two countries reached 3.19 billion U.S. dollars in 2006, up 48.8 percent year-on-year. Egypt has become China's fourth largest trade partner in Africa.

The investment of Chinese companies in Egypt registered as 300 million dollars, involving sectors such as oil and communication, and created more than 6,000 jobs for the local people.

Source: Xinhua