China Trade Information

China National Petroleum Corporation (CNPC) is teaming up with China Petroleum & Chemical Corporation (Sinopec Group) to bid for the Peru-based private-held company, Petro-Tech Peruana, sources reported.

The potential deal is expected to cost between US$1.5 billion and US$2.5 billion, and the two Chinese state-owned companies, cooperating under Beijing’s coordination, expects Petro-Tech to announce the result by around late September..

Petro-Tech is owned by the private U.S. company Offshore International Group. It owns over 5 million acres of shallow-water offshore blocks in Peru.

Chinese state-owned oil companies were reported to bid for Tech Peruana late last week. Also last week, China’s largest offshore oil producer, China National Offshore Oil Corp (CNOOC)<883>, was reported to team up with CNPC to bid for an Angolan oil and gas asset owned by U.S.-based Marathon Oil Corp. The deal is expected to cost around US$1.5 billion.

Sources said that the state-owned companies have switched their focus to medium or small-sized assets, as there had been little success in securing bigger assets. In addition, the joint bid by the mainland players represents a change of approach in overseas acquisition, in order to avoid two companies bidding up the price.

Tags: CNOOC, CNPC, Petroleum, Sinopec

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