Monday, January 3, 2011


China’s quest for global energy resources is shifting into higher gear as the country’s giant oil companies seal bigger, more complex deals to help fuel their country’s economic boom.
Bankers see China’s national oil producers increasingly buying companies, not just assets, and using their deep pockets to acquire technology to extract harder-to-reach resources. While they’re likely to continue combing emerging markets for energy deals in 2011, they may be tempted to hunt for opportunity elsewhere—including in or near the U.S.

Bloomberg News
Cnooc is among the Chinese state energy companies shopping for assets.
Energy consultancy Wood Mackenzie says diesel, gasoline and gasoil demand in China is rising about 8% annually. China’s appetite for oil won’t peak until 2025, according to UBS.
To meet that demand, China’s biggest energy companies have gone on a buying spree. Last year was a record year for China’s oil and gas acquisitions, with $24.3 billion in deals, up from $17.1 billion in 2009, according to data provider Dealogic.
The largest Chinese deal, state-ownedChina Petrochemical’s acquisition of a 40% stake in Repsol’s Brazilian oil assets for $7.1 billion, signaled China’s expanding profile in Latin America, where it bought more assets than any other nation last year. It also showed the Chinese were willing to pay more than the market expected.
READ FULL STORY HERE

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