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CNPC looking to acquire overseas energy assets

07th August 2013

CNPC is looking into oil and gas fields for purchase, including ones owned by Exxon Mobil and Rosneft

CNPC looking to acquire overseas energy assets
CNPC is looking to expand its overseas energy assets owned by US-based Exxon Mobil and Russia’s Rosneft.

One of China’s largest oil producers is considering growing its already expansive energy portfolio with more purchases in the next few months.


China National Petroleum Corp (CNPC) is looking to expand its overseas energy assets owned by US-based Exxon Mobil and Russia’s Rosneft. The company is very interested in Exxon’s mature field in Iraq as well as arranging a supply agreement with state-run Rosneft for future deals.


CNPC has already made more than USD 9bn in purchases this year, including the USD 4.2bn purchase of a stake in Mozambique’s Rovuma fields in July, as part of a plan to double overseas output by 2015.


Sources inside the company say that they also have considerations for another USD4bn in purchases. There are worries, as well, of CNPC lacking behind purchases done by close rivals China Petrochemical Corp and CNOOC, at USD41bn and USD26bn respectively.


CNPC has already grown talks to trade with its Russian counterpart. Rosneft boss Igor Sechin held talks in May with CNPC management about joint exploration and production projects in the Arctic Seas as part of his working trip to Beijing discussing prospects of joint projects in seismic studies, exploration and hydrocarbon production and signed a number of documents concerning mutual cooperation.


The company are also considering bids for assets from Brazil’s Petrobras in Colombia and Peru as well as Brazilian oil startup Barra Energia Petroleo e Gas for around USD2bn.


CNOOC have also made acquisitions in the last few months, recently getting approval for their long delayedbuyout of Canada’s Nexen for USD 15.1bn in February, as well as exploring the possibility of constructing a refinery complex and pipeline project in Uganda.


CNOOC, along with 64 other companies, bidded in Brazil’s 11th round of auctions of oil and gas blocks in May. Since 2009, Chinese oil companies have spent around USD 92bn on energy acquisitions and joint ventures. Over 15 per cent per cent of that came from CNOOC’s USD 15.1bn purchase of Nexen.

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