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Chinese Company Searching for Billion-Dollar Oil Deals in Texas

  • Xinchao seeking assets where it will dictate drilling schedule
  • U.S. unit Blue Whale looks for opportunities in the Permian

China’s Yantai Xinchao Industry Co. is pursuing U.S. oil acquisitions worth as much as $1 billion in the Permian Basin, and it won’t be satisfied letting others run the show, according to the head of the company’s U.S. subsidiary.

Unlike other Asian companies that bought stakes in U.S. energy prospects in recent years, Xinchao is seeking so-called operated positions, or deals that give it primary authority over everything from how deep to drill to how intensively to frack each well, said Curtis Newstrom, chief executive officer of Blue Whale Energy North America Corp., the U.S. arm of the Shanghai-listed company.