China eyes Latin America oil and gas potential

CNPC expects to invest at least USD 2bn in Peru over the next 10 years since buying Petrobras' assets in the country, a top CNPC executive told Reuters newsagency this week

"We are looking for more opportunities in Peru, to acquire companies or to participate in the bidding of oil fields," Gong Bencai, head of CNPC's Latin America division, is reported to have commented.

CNPC already plans to conduct a USD 1bn natural gas exploratory project a a block purchased from Petrobras.

Gong also commented on CNPC’s interest in a proposed USD 4bn gas pipeline project in southern Peru.

The pipeline would run between the Andean Camisea natural gas fields to power generation plants on the coast.

"In Venezuela we are negotiating with the government for new blocks there," Gong is also reported to have commented.

In Mexico, Petroleos Mexicanos (Pemex) is negotiating with various Chinese companies to raise a reported USD 4bn worth of funds to finance projects.

The prospective agreement would be between Pemex’s international unit PMI Comercio Internacional, Xinxing Ductile Iron Pipes, SPF Capital Hong and other Chinese companies.

Mexico signed an historic energy bill last year to end Pemex’s oil and gas production monopoly and to allow private investment in the industry. Pemex’s production has fallen to 2.5 million barrels a day from 3.3 million in 2004.