WRITE for ATol ADVERTISE MEDIA KIT GET ATol BY EMAIL ABOUT ATol CONTACT US
WSI
Asia Time Online - Daily News
             
Asia Times Chinese
AT Chinese



    South Asia
     Dec 10, 2005
Chinese, Indian giants make joint Syrian oil bid

BEIJING - China's biggest oil producer is working with India's state-owned oil firm to secure more oil reserves in Syria to meet surging domestic energy demand.

The China National Petroleum Corp (CNPC), parent company of Hong Kong and New York-listed PetroChina, has confirmed it will be teaming up with India's Oil and Natural Gas Corp (ONGC) to bid for assets worth up to US$1 billion in Syria.

The two firms are usually buyer-market competitors.

"We are still at the very preliminary stages," said a CNPC director



who wished to remain anonymous.

Sources also said that CNPC had signed a US$83-million contract with Peru to explore oil and gasfields there. CNPC sources said the company would conduct explorations through Sapet Development Peru Inc, a subsidiary that has been pumping out oil in northern Peru since 1994.

"It is not a big deal for CNPC, it is a common business development for us in that particular region," the CNPC director said.

Sources said CNPC and ONGC, were working on a joint offer to buy PetroCanada's 38% stake in Al Furat Production Company, Syria's largest oil company, which is operated and majority-owned by Royal Dutch Shell.

The deal, although not expected to greatly boost the oil firms' reserves, is the first time the two companies have joined forces in overseas expansion.

Al Furat produced an estimated 10.6 million tonnes of oil last year, compared with CNPC's 141.9 million tonnes.

Analysts said due to the political risks associated with a country such as Syria, CNPC and ONGC might be working together to share the risk and reduce the cost of acquisition.

A Reuters report on Wednesday said CNPC and ONGC were competing for the US$2-billion privately owned Kazakh oil producer Nations Energy. That follows CNPC's successful takeover of PetroKazakhstan in October. ONGC was also bidding for that same firm.

The CNPC director yesterday said he was not aware of the possible buyout in Kazakhstan.

Industry analysts said southern Peru and neighboring Bolivia, the second-biggest natural gas reserves in South America after Venezuela, share similar characteristics, which means the new block has much potential.

Shares of PetroChina fell 0.78% to HK$6.35 (81.4 US cents) yesterday on the Hong Kong Stock Exchange.

(Asia Pulse/XIC)

 

 
 



All material on this website is copyright and may not be republished in any form without written permission.
© Copyright 1999 - 2005 Asia Times Online Ltd.
Head Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong Kong
Thailand Bureau: 11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110