China is eyeing Australia's energy goliath By Richard Webb August 14, 2005
China'S booming demand for energy has analysts speculating that its state-owned oil and gas giant, CNOOC, could be looking at a $A30 billion bid for Australia's energy goliath Woodside Petroleum.
The argument goes that China wants to have its foot on more substantial sources of energy to meet its escalating demand.
CNOOC was thwarted by the US Government earlier this month when it made a $US18.5 billion offer for the US's seventh-largest oil company, Unocal. Some believe it is now running a ruler over Woodside.
CNOOC already has a stake in Australian energy assets - it paid $US348 million for a 6 per cent stake in North-West Shelf gas reserves from Woodside and other project partners including BHP Billiton, and 25 per cent of the venture to supply $A25 billion of liquefied natural gas to the Guangdong LNG import terminal.
But last week, Woodside made a big song and dance over a $A5 billion development of its wholly-owned Pluto gas field, which has had only two wells drilled in it. That, leading business columnists said, smacked of a company that wanted all the good news into its share price to fend off an unwanted suitor.
Advertisement AdvertisementWoodside said there would be no Chinese involvement in the first stages of the Pluto development but did not rule out Chinese participation further down the track.
If CNOOC did launch a bid for Woodside, it would leave Treasurer Peter Costello with a difficult decision. Four years ago Mr Costello knocked back the last bid for Woodside, from its 34 per cent shareholder Shell, saying it was not in Australia's national interest for a foreign company to control its biggest resource project. But with the recent push for a free trade agreement with China, would the answer be different this time?
Either way, Woodside's shareholders can thank the Treasurer for his first decision - the Shell bid valued Woodside at $10 billion; last week the company was valued on the sharemarket at $22 billion.
China's Hu to visit Canada in September - report 08.21.2005, 06:45 AM
MONTREAL (AFX) - Prime Minister Paul Martin will meet with Chinese President Hu Jintao in Canada next month as part of the Chinese leader's first North American tour, the Vancouver Sun reported.
The leaders from Canada and China, Canada's second-largest trading partner after the United States, will discuss trade, investment, human rights and cultural exchanges, according to the newspaper.
While Chinese and Canadian diplomatic officials declined to confirm Hu's visit, the Chinese embassy in Ottawa said it was the subject of negotiations, the newspaper said.
'But nothing is finalized,' the paper quoted an embassy official as saying.
Canadian foreign ministry spokesman Andrew Hannan told AFP that 'we cannot confirm the visit of the Chinese president to Canada.'
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