Snow...other way around. Addax/Sinopec would become a minority shareholder of ERHC. Why? Stock apreciation/value.
Totally a scenario based on Umbra's posts. I don't paticularly believe that is the way it gets ironed out. In fact, with energy being one of the largest focuses of our government....I still believe "everything and anything" is still in play...especially if the reserves are of the size I believe they might be.
I refer you to this article...and please note the date of same and especially the bolded lines:
07.03.2006 04:10 Sinopec seeks foreign oil fields, unlikely to make outright purchase - report BEIJING (AFX) - China Petroleum&Chemical Corp (Nachrichten) (Sinopec) said it wants to acquire more overseas oil fields, but sees too much political fallout in trying to buy another company outright, the Wall Street Journal reported.
'Now, buying a company overseas might cause too much of a shock. That's why we prefer to buy a stake or join in cooperation -- it's more flexible,' the newspaper quoted Sinopec vice chairman Wang Jiming as saying.
Sinopec is looking at projects around the world, including the Middle East, Caspian Sea, north and west Africa, Russia and South America, the newspaper said, citing Wang.
But the outright acquisition of a foreign company could prove too difficult, as illustrated by CNOOC's failed bid for Unocal Corp last year, Wang said.
Pressure from US Congress forced CNOOC, China's largest offshore oil producer, out of the running for California-based Unocal, which was eventually taken over by Chevron.
Sinopec does have options outside China, with a deal to be one of the first companies to enter Saudi Arabia, where it is looking for gas. It also has assets in Algeria, Angola and is in talks to develop oil and gas fields in Iran, among other projects, the newspaper said.
Sinopec refineries lost tens of billions of yuan last year, a pattern that could continue this year because of high international oil prices, the newspaper said, citing Wang.
.....it sure seems like the line up of these paragraphs from above article gives indication of buying into:
'Now, buying a company overseas might cause too much of a shock. That's why we prefer to buy a stake or join in cooperation -- it's more flexible,' the newspaper quoted Sinopec vice chairman Wang Jiming as saying.
Sinopec is looking at projects around the world, including the Middle East, Caspian Sea, north and west Africa, Russia and South America, the newspaper said, citing Wang.
But the outright acquisition of a foreign company could prove too difficult, as illustrated by CNOOC's failed bid for Unocal Corp last year, Wang said."
Buying a stake of....instead of outright aquisition is what this article refers to and it is written based on comments from our block 2 partner and the timing of article is most interesting. Hmmmm....didn't Sinopec have to go back to Beijing for approval to operate block 2???? I'm betting approval was for more than that...as they aren't a peanut oil company by any means. Just IMHO.
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