Chinese oil companies invest in overseas

Chinese oil companies continue to invest in exploration and production abroad, according to China Daily, with a subsidiary of Sinopec investing $2.2 billion (£1.4 billion) in the United States.

Sinopec International Petroleum Exploration & Production Corporation (SIPC) invested the money in exchange for one-third of five new venture plays owned by Devon. The Tuscaloosa Marine Shale, Niobrara, Mississippian, Ohio Utica Shale and the Michigan Basin are included in the 1.2 million net acres, with the companies expected to drill around 125 gross wells in the plays.

PetroChina Co is also looking to invest abroad, buying 40 per cent stake in one of the oil-sands projects owned by the Athabasca Oil Sands Corp for $673 million. This is the first oil-sand project to be fully owned by a Chinese company in the region.

China's overseas oil relations were soured in 2005 when a political skirmish was triggered by an attempt to take over the Canada-based Unocal. However, there has been a lot of progress made in recent years.

The recent deals add to Sinopec's acquisition of the conventional oil and gas company Daylight Energy Ltd, CNOOC Ltd partnership with Nexen Inc and Petro China's investment in the shale property of Chesapeake's Energy.