For the first time, an oilfield services contract in Abu Dhabi has been won by a Chinese state oil firm, amidst the deepening commercial ties between the world's second- biggest energy consumer and Gulf oil exporters.

Thursday, a statement by National Drilling Company, the drilling unit of the Abu Dhabi National Oil Company (ADNOC), confirmed that it had given a Dh800 million
(US$218m) contract to Baoji Oilfield Machinery, a subsidiary of the China National Petroleum Corporation (CNPC), with the aim of supplying oil rigs for onshore drilling.

Last month, Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, had paid a visit to China with the aim of bolstering co-operation with Beijing, and the present deal has been announced shortly after the visit.

Sheikh Mohammed and Hu Jintao, the Chinese president, during the visit, talked significantly about an agreement between ADNOC and CNPC to work together on oil and petrochemicals projects.

The UAE, via the Thursday's agreement, gets exposure to an increasing list of regional energy exporters, which have invited Chinese contractors to their oil and gas sectors. A source said: "The trend underscores China's growing importance to the Middle East as a reliable customer for crude during a period when western oil consumption has been falling."

The country, which is looking to sell goods and buy energy, sees the Gulf region as providing a solid market in tough economic times.

Dr Ibrahim Oweiss, a professor of economics at Georgetown University's School of Foreign Service in Qatar expressed, "Trade is increasing substantially and at the same time trade between China and the US has been affected by the current financial crisis. Therefore, it's in the best interests of China to develop further relations with the Gulf countries."