CITIC in US$1.9 billion Kazakh oil purchase
By Mai Dou (China Daily)
Updated: 2006-10-27 08:53
Industry analysts said the CITIC-Nations deal would help address the surging
energy demand of China, which imports about 40 per cent of its total oil
consumption, while the Kazakh fields that CITIC is purchasing will take
advantage of the existing pipeline infrastructure to transport oil to the
Chinese market.
State-owned China National Petroleum completed a 962-kilometre crude oil
pipeline last December to pump Kazakh oil to the company's refinery in Dushanzi,
in Northwest China's Xinjiang Uygur Autonomous Region.
Commenting on the deal, Nations Energy Director David G. Wilson said: "We
believe this is a fair price for Nations Energy shareholders and option holders
and our board of directors has unanimously agreed to recommend this transaction
to our security holders."
CITIC Assistant President Zhang said the purchase is "an important element in
the execution of CITIC's oil and gas strategy and is expected to provide the
company with a proven base for its overseas energy business expansion strategy."
After the completion of the proposed deal, Zhang said the Beijing-based
company will consider building a medium-sized refinery in the Mangistau region
of Kazakhstan, and seek Kazakh partners for strategic co-operation in energy
resource development and industrial project construction.
 | 1 | 2 |
(For more biz stories, please visit Industry Updates)
|
