China's oil field buying spree continues........
China looking to buy Canadia's Nations Energy and also a part of BP's Russian unit. Two articles pasted below.
ND9
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AFX News Limited
China's CITIC Group in talks to buy Canada's Nations Energy - report
06.05.2006, 10:11 PM
BEIJING (XFN-ASIA) - CITIC Group, a state-owned conglomerate, is in talks to buy Canadian oil company Nations Energy Co, the Wall Street Journal reported.
The newspaper, describing its sources as people familiar with the matter, said the cost of the purchase is estimated at 2.2 bln usd.
However, the Journal quoted one of its sources as saying that it is not certain that the deal will go through.
Nations Energy's main asset is the Karazhanbas oil field in Kazakhstan, which pumped 41,000 barrels of oil a day last year, according to the company's Web site.
If completed, the deal would be the third-largest overseas oil acquisition by a Chinese company and the second in Kazakhstan.
Last year, China National Petroleum Corp (CNPC) bought an oil field in Kazakhstan for 4.2 bln usd and built a pipeline to carry Kazakh crude to China.
Both CNOOC and CNPC had passed up on buying Nations Energy, the Journal said.
Nations Energy has been trying to sell itself for at least a year, the newspaper said.
It has proven reserves of 400 mln barrels, according to the company's Web site, and has smaller operations in Azerbaijan.
virginie.mangin@xinhuafinance.com
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BP discusses $4bn sale of oil fields to Russo-Chinese alliance
Terry Macalister
Tuesday June 6, 2006
The Guardian
BP is in talks to sell a key part of its Russian business for up to $4bn (£2.1bn) to an unusual partnership involving the local oil group Rosneft, which is soon to float, and Sinopec of China.
The potential deal involves the Udmurtneft part of TNK-BP, which produces 120,000 barrels a day of heavy crude and holds reserves of 1bn barrels but is in need of new investment.
BP, which has invested $8bn in TNK-BP over the last three years, declined to comment on the discussions, saying it was a matter for the Russian joint venture. But sources close to the London-based oil major insisted it did not signal any disenchantment with Russia nor any strategic deal with Sinopec.
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