"It's a significant annual contract in terms of quantity," said the director general of Total Gabon, Jacques Marraud des Grottes, who declined to give figures. The deal guarantees the annual supply of crude oil by Total Gabon to China from the west African state. "Sinopec is the biggest Chinese refiner, with a capacity of 2.4 million barrels per day. It represents more than half of the Chinese market in terms of distribution," said Marraud des Grottes, whose company accounts for 42 percent of the Gabon's oil production. "This contract is important at a time when there is enormous speculation about the production of Gabon's oil," said Gabon's energy minister, Richard Onouviet. "That a refiner such as Sinopec is interested in Gabonese oil... sends a strong signal." The minister also announced that Sinopec and Gabon would signed a protocol accord covering exploration and production on Monday during a visit by to the country by Chinese President Hu Jintao, who is due to arrive Sunday on the second leg of a three-nation African tour. Marraud des Grottes said "Gabon still produces 270,000 bpd, it is still competitive." China consumes 5.5 million barrels per day and "the Chinese market is expanding. Its needs in terms of imports of petroleum products are increasing by 10 percent per year," he added. Oil represents more than half of Gabon's state revenues. Production of crude reached a peak of 18.5 million tonnes in 1997 before falling to around 11.5 million tonnes in 2002. PIN//AFP