Summary of Feeding the dragon: the relentless drive by Chinese energy companies to buy ovrseas oil and gas assets is likely to be constrained by forei

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Feeding the dragon: the relentless drive by Chinese energy companies to buy ovrseas oil and gas assets is likely to be constrained by foreign politics.(China).

Petroleum Economist 72.12 (Dec 2005): p10(2). (1302 words)

In lou of China's go-abroad policy, the country has began to lax many of it's policies such as "loosening its control over the mergers and acquisitions (M&A)" which will help China to procure oil more easily abroad. According to the article the rush overseas "is part of a wider, explicit government strategy". Deals were signed in Australia, Myanmar and Indonesia; and Sinochem by China's National Offshore Oil Corporation (CNOOC). According to the article "the crowning glory was CNPC's successful $4.4bn acquisition of PetroKazakhstan, which gives the Chinese firm proved and probable reserves of 0.55bn barrels of oil equivalent at roughly $7.60 a barrel and, importantly, the chance to pump oil from fields direct to China through an under-construction 1,000 km pipeline." In 2004 the company "singed 48 contracts with 20 countries" and "over the next 15 years plans to spend a total of $18bn on oversees acquisitions and stakes. One key advantage to China's go-abroad policy is the fact that China does not adhere to restrictions set by other countries namely the United States and what countries it can do business with. As a result China has a history of making deals with corrupt regimes such as Uzbekistan, Myanmar and Sudan. For China the bottom line is business.Su