China's biggest oil producer is working with India's state-owned
oil firm to try to secure more oil reserves in Syria to meet
surging domestic energy demands.
The China National Petroleum Corp (CNPC), the
parent company of Hong Kong and New York-listed PetroChina,
has confirmed to China Daily that the Beijing-based oil
conglomerate is teaming up with India's Oil and Natural Gas Corp
(ONGC) to bid for assets worth up to US$1 billion in Syria.
This is the first time the two historical rivals are cooperating
in overseas expansion.
"We are still at the very preliminary stages," said a CNPC
director yesterday, who wished to remain anonymous.
Sources also said yesterday that CNPC has signed a US$83-million
contract with Peru to explore oil and gas fields there. CNPC
sources said the company would conduct explorations through Sapet
Development Peru Inc, a subsidiary that has been pumping out oil in
northern Peru since 1994.
"It is not a huge deal for CNPC; it is a standard business
development exercise for us in that particular region," the source
said.
Industry analysts said southern Peru and neighboring Bolivia,
the second-biggest natural gas reserves in South America after
Venezuela, share similar characteristics, which means the new block
has much potential.
Sources said that CNPC and ONGC, the two state-owned oil
companies from the world's two most populous nations, were working
on a joint offer to buy PetroCanada's 38 percent stake in Al Furat
Production Company, Syria's largest oil company, which is operated
and majority-owned by Royal Dutch Shell.
Al Furat produced an estimated 10.6 million tons of oil last
year, compared with CNPC's 141.9 million tons.
Analysts said that due to the political risks associated with a
country like Syria, CNPC and ONGC might be working together to
share the risk and reduce the cost of acquisition.
A Reuters report on Wednesday said CNPC and ONGC were competing
for the US$2-billion privately-owned Kazakh oil producer Nations
Energy. The CNPC source yesterday said he was not aware of the
possible buyout in Kazakhstan.
Shares of PetroChina fell 0.78 percent to HK$6.35 (81.4 US
cents) yesterday on the Hong Kong Stock Exchange.
(China Daily December 9, 2005)
