China National Petroleum Corp. has agreed to buy Canadian oil company PetroKazakhstan for $4.18 billion-a deal that would be the largest overseas acquisition by a Chinese company, but one that might be complicated by a planned counterbid by Indian investors and that will require a two-thirds vote by PetroKazakhstan shareholders at a meeting to be held in October
CNPC has been involved in oil and gas business in Kazakhstan for many years. Based on the guiding principle of mutual benefit and win-win situation, CNPC has fostered excellent collaboration relations with the Government of Kazakhstan and KazMunaiGaz By means of investment and technological cooperation, CNPC has made great contributions to the development of Kazakhstan oil industry and the boosting of its local economy.
CNPC International had already several projects in PetroKazakhstan. It owns 85.42% of Aktobemunaigas Corporation (now CNPC Aktobe), 100% of the Bars exploration and development block formerly owned by Nimir Petroleum Bars Holding BV of Great Britain, and 50% of the North Buzachi oil and gas field located in northwest Kazakhstan, also formerly of Nimir and Chevron Texaco
The Chinese company beat a competing offer from a joint venture between ONGC Videsh Ltd., the international arm of India's state-controlled Oil & Natural Gas Corp., and an investment company owned by London-based steel billionaire Lakshmi Mittal.
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