Beijing (UPI) Dec 13, 2010
Chinese oil giant China Petrochemical Corp., or Sinopec, agreed to buy all of Occidental Petroleum Corp.'s assets in Argentina for $2.45 billion, the company said.
The deal, announced Friday, falls in line with stated goals of state-owned China Petrochemical, known as Sinopec, "for global expansion in some of its strategically important regions and will further lift the overseas asset proportion of the company total," said He Wei, a senior analyst at BOCOM International Holding Co. in Beijing, China Daily newspaper reports.
Occidental Argentina has gross proven and probable reserves of 393 million barrels of oil equivalent, plus an interest in 23 production and exploration concessions in Argentina, 19 of which the company operates, said a Sinopec statement. Production from Occidental Argentina's 22 producing concessions totaled more than 51,000 barrels of oil equivalent per day last year.
Sinopec's entry into Argentina follows Chinese state-owned oil company Cnooc Ltd.'s investment of $3.1 billion in March for a 50 percent stake in Argentina's Bridas Energy Holdings Ltd., a private energy company.
With backing from Beijing and access to cheap credit, observers say Chinese oil majors are able to take longer-term bets at a time when many Western oil companies are discouraged by Argentina's strict state regulations and a burdensome tax regime.
"China is probably the only country that would actually buy in [to Argentina], because of the political pricing system there," said Laban Yu, oil and gas analyst at Macquarie in Hong Kong, the Financial Times reports.
China surpassed the United States in 2009 as the world's biggest consumer of energy, the IEA says.
Between 1999 and 2009, oil consumption in China increased 93 percent, a recent report by analysts at Macquarie Research states. That compares with a total global consumption increase of 11 percent.
Sinopec also announced in October that it was buying 40 percent of Spanish oil producer Repsol's Brazilian unit YPF SA for $7.1 billion.
The two Sinopec deals -- Occidental and Repsol -- represent the two biggest oil and gas acquisitions in Latin American history, said Scotia Waterous, the oil and gas advisory arm of Bank of Nova Scotia, sole adviser for both deals.
China's upstream oil and gas deals in Latin America this year have totaled more than $15 billion and industry executives expect more to come, the Financial Times reports.
"There is not a single (chief executive officer) of a major oil company in Latin America, not one, who has not been approached by the Chinese," the newspaper quoted an unnamed mergers and acquisition banker at a western bank as saying.
Share This Article With Planet Earth
Powering The World in the 21st Century at Energy-Daily.com
GE invests in Brazil's oil drilling sector
London (UPI) Dec 13, 2010
General Electric has agreed to spend $1.3 billion to purchase Wellstream Holdings, a British subsea pipeline manufacturer active in Brazil. Wellstream shareholders would receive $12.20 a share, including a 6 cent special cash dividend, GE said in a statement Monday. The transaction, which the board of Wellstream intends to unanimously recommend to its shareholders, is expected to be fin ... read more
Who Uses The Most Electricity In Germany|
How Can Urban Areas Efficiently Save Energy
Protest halts Dutch power station project
EU wants body-wide green power scheme
Hundreds clash over Taiwan petrochemical project
China looks to Argentina for oil
Assessing The Environmental Effects Of Tidal Turbines
Seven-Year Moratorium On Gulf Oil Drilling An Unwise Decision
Massive offshore wind proposed for R.I.
Repair And Inspection Services For The Expanding Wind Power Industry
Vestas Selects Broadwind Towers For Glacier Hills Wind Project
Optimizing Large Wind Farms
US DoD Selects Skyline Solar To Install High Gain Solar Arrays
Geological Society of America Installs Solar Array
SolarReserve Advances Permitting For Arizona Solar Project
NRG To Acquire 290MW Agua Caliente Solar Project
Russia, Mongolia set terms for uranium mining venture
Mitsubishi to produce nuclear fuel in US with AREVA
Areva head opposes new capital increase
Kuwait boosts stake in French nuclear giant Areva
Less Than They Are Worth
Review Highlights Knowledge Gaps Surrounding Biofuels And Land Use Change
Greenbelt Resources Conducts First Beverage Waste-to-Ethanol Conversion Study
Volvo Group Contributes To Carbon-Neutral Airports
China Builds Theme Park In Spaceport
Tiangong Space Station Plans Progessing
China-Made Satellite Keeps Remote Areas In Venezuela Connected
Optis Software To Optimize Chinese Satellite Design
US southwest could see 60-year drought: study
In Cancun climate talks, India enjoys place in sun
Nations set up global climate fund
Climate talks agree to pay to protect forests
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|