China Vows to Secure More Overseas Energy After Cnooc Purchase
China’s government said it will “proactively” invest in energy projects abroad to secure reliable supplies for its expanding economy, a day after the announcement of two overseas acquisitions for $16.6 billion.
Authorities will boost financial aid and guidance for energy investments, the Beijing-based National Development and Reform Commission, the country’s top economic-planning agency, said today in a state plan for the period through 2015.
The report signals leaders may seek to build on transactions including yesterday’s announcement that Cnooc Ltd. (883), China’s largest offshore oil and gas explorer, will buy Canada’s Nexen Inc. (NXY) for $15.1 billion in the biggest overseas takeover by a Chinese company. China is the world’s second-largest importer of crude oil and Yi Gang, head of the State Administration of Foreign Exchange, said July 21 that the nation faces a window of opportunity to venture overseas.
“China will invest in overseas energy and mineral resource development projects to secure long-term, stable, reasonable and secure supplies of energy and resources,” the NDRC said in the 23-page plan. “China will diversify sources of energy imports to ensure supply security.”
Nexen is one of two major Chinese energy acquisitions announced yesterday. China Petrochemical Corp. agreed to spend $1.5 billion for a 49 percent stake in Calgary-based Talisman Energy Inc. (TLM)’s U.K. unit after spending $2.2 billion last year to buy Daylight Energy Ltd., also of Calgary.
--Zhou Xin. With assistance from Baizhen Chua in Beijing. Editors: Scott Lanman, Rina Chandran
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