Oil deals strengthen China's energy supplies

As China's energy consumption continues to rise to satisfy its economic development, domestic natural resources companies are accelerating their moves in overseas energy markets.

China's top three oil and gas players have all now taken their first steps in searching for energy resources in the Arctic.

The country's biggest offshore oil producer CNOOC Ltd confirmed earlier this month that it was holding discussions with Iceland-based Eykon Energy to bid for an oil and gas exploration license in the region.

A source with Sinopec Group, China's biggest refiner, told China Daily that it is also holding preliminary talks with Iceland over oil and gas exploration off the northeast coast of the Nordic country.

Analysts say that the latest crude oil supply contract and the LNG cooperation will help stabilize China's energy supplies.

As much as 56.4 percent of China's crude oil was imported in 2012.

"The 25 years of crude supply from Russia will help increase China's energy security," said Zhu Chunkai, a senior oil analyst with Sublime. "The imports from Russia will take up about 10 percent of China's future crude consumption annually."