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Thursday, January 13, 2011

China Hunts Energy Fields

China continues to pursue the fields in different parts of the world's energy sources to meet domestic fuel demand over the high rate of economic growth.

Chinese national oil producers increasingly keen to buy shares of oil companies of the world. Not just an asset, even to spend enough in order to obtain the technology to extract resources that are difficult to reach. Chinese oil companies also continue to comb the emerging markets to continue to bid in 2011, and probably until near the United States (U.S.).

Diesel, petrol and gas demand in China increased by about 8 percent each year. Chinese oil demand will peak in 2025. To meet these needs China's energy companies seem to be racing to buy the world's oil reserves. The year 2010 was the record high oil and gas acquisitions made by Chinese who reached an agreement worth U.S. $ 24.3 billion, larger than in 2009 was only U.S. $ 17.1 billion.

Largest China's deal is undertaken by the Chinese Government-owned oil company Petrocemical acquire 40 percent stake in Repsol Brazilian assets worth U.S. $ 7.1 billion. This suggests China to expand to South America. This purchase is the largest purchase compared with other countries over the past year. This also indicates that China is willing to pay more than the market expected.

Chinese oil companies continue to diversify its source - the source of hydrocarbon. And they have excess jurisdiction where U.S. and European oil companies have been politically difficult to reach agreement in Sudan, Myanmar, Iran and Syria.

They also can extend the hunt until the Gulf of Mexico, where independent companies tend to release their assets there because of increased insurance costs and increasingly stringent regulations after an explosion at BP's refinery Macondo in April last year which resulted in the largest offshore oil spill in U.S. history. China's giant energy company, CNOOC also has purchased a small share of offshore oil projects in the Gulf owned by Norway's Statoil.

Given that three-quarters of world exploration company headquartered in the U.S., the Chinese tend to bid for U.S. firms. All the objectives of the acquisitions would lead China to North America within the next two years.

CNOOC in 2005 never to bid against California Unocoal, which then failed after some U.S. lawmakers oppose the deal on the grounds of national security. However, in 2010 CNOOC successfully acquire oil and gas assets in the project Eagle Ford Shale in South Texas for U.S. $ 1.1 billion.

One - an attraction for Chinese energy companies are buying these projects using new technology that could extract energy from unconventional sources like oil sands or gas trapped in coal. The project is attractive to Chinese buyers because they provide an opportunity not only to collect hydrocarbons only, but also to learn new technologies to develop the potential of China's large gas reserves.

Chinese state-owned enterprises, Sochem Group is buying 40 percent stake in Peregrino, offshore Brazil from Statoil worth U.S. $ 3.07 billion in May 2010. Although there may be no oil to be sent to China after a successful production next year. But they traded with the local product state energy company that operates outside the country.

Chinese enterprises are also increasingly competing among one another and not the state that determines the winner. So the likelihood of success in the auction of a property abroad is determined by their own.