Tribble Agency
Tribble Agency


Nepal inks historic oil agreement with China

Asked whether or not China has commenced provides to Nepal, at present hit by the Indian-origin Madhesis' protests over the brand new structure, Lu stated "in view of their (Nepal's) request, we'll do our greatest to offer help and each side are in communication".

Nepal has sealed a deal with China to import petroleum products from the northern neighbor, ending four decades of sole dependence on India for the supply of gasoline.

The Nepalese embassy said in a statement a memorandum of understanding had been signed between Nepal Oil Corp and National United Oil Corp (PetroChina), without giving details of the deal. "A larger business-to-business agreement will be signed between the two state-owned oil companies within one and a half month", he said. An eight-member government delegation led by Mr Maskey had left for Beijing on Monday to open Nepals first oil trade negotiations with China, in the wake of severe fuel shortages in the country.

October. 28: India's strategic establishment was scrambling this evening to counter Nepal's biggest diplomatic swerve away from New Delhi in years after Kathmandu inked a pact to import fuel from Beijing. Due to extended power cuts and increase in development works, demand for petroleum products in Nepal has been growing by 10 percent annually.

Landlocked Nepal has for the past six weeks accused India of effectively engineering a blockade along the border - through which Nepal imports nearly all its supplies.

India has repeatedly denied the charge, insisting that the blockade was exclusively a outcome of protests by the Madhesi community that dominates the plains and is convinced the new Constitution denies them fair rights.

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