Saturday, March 16, 2013

Chinese Investments in the Energy Sector

PetroChina Ltd. has acquired 20% stake of Italian oil producer ENI in a gas field in Mozambique in southern Africa for $4.2 billion. ENI S.p.A., headquartered in Milan, said it will retain 50 percent of the Area 4 field while three other partners each will own 10 percent. ENI has described Area 4 in Mozambique as one of the biggest gas discoveries of the past decade. The Italian company said it also signed an agreement with PetroChina, a unit of China National Petroleum Corp., to jointly study development of a shale gas block in southwestern China. China’s government is promoting shale gas exploration in hopes of curbing rising dependence on imported oil and gas.

China’s No. 2 state-owned energy producer, Sinopec Ltd., announced a partnership in December with U.S. oil giant ConocoPhilips Co. to explore for shale gas in a different portion of the Sichuan basin.

In December, PetroChina agreed to invest $2.2 billion for a 49.9 percent stake in a Canadian shale gas field being developed by Encana Corp.

Last month, another Chinese state-owned oil producer, CNOOC Ltd., completed a $15.1 billion acquisition of Canadian energy producer Nexen. It was Canada’s biggest overseas energy deal to date.

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