China, Saudi Arabia sign major oil deal

BEIJING, Jan. 24 (UPI) -- China and Saudi Arabia have signed an energy cooperation deal on oil, gas and minerals.

The deal would "avoid dual taxation," allow for a Saudi loan to improve infrastructure in China's northwestern city of Aksu in China's oil-rich Xinjiang and cooperation in "vocational training," Xinhua reported.

Neither side immediately provided details.

Saudi Arabia's King Abdallah, who assumed the throne last August, arrived in Beijing on Sunday.

The agreements included one on "oil, natural gas and mineral cooperation," and another on "economic, trade and technical cooperation," officials said.

Chinese President Hu Jintao said the two countries should increase bilateral cooperation and promote the development of bilateral strategic friendship and cooperation, the official Xinhua news agency reported.

Abdallah proposed that Saudi Arabia would encourage cultural exchanges between two countries, in addition commercial cooperation.

Saudi Arabia is already one of the largest suppliers of energy to China.

The country supplies 14 percent of China's oil imports, about 450,000 barrels a day. In the first 11 months of last year, Saudi Arabia exported around 20.01 million tons of crude oil to China, China Daily reported.