China Gets More Oil--PetroChina Invests $1.7 Billion In Oil Sands

oil china petrochina

China keeps spending its dollars on more stuff that will help it grow:

CALGARY, Alberta (AP) — PetroChina (PTR) is making a nearly US$1.7 billion investment in the Canadian oil sands.

Athabasca Oil Sands Corp. says PetroChina is buying a 60 per cent working interest in its Mackay River and Dover oil sands projects in northeastern Alberta.

Bill Gallacher, chairman of Athabasca, says it’s hard to finance oilsands developments in the traditional equity markets. He says a joint venture with one of the world’s largest oil companies will ensure the two projects are completed in a timely manner.

PetroChina has big plans for making acquisitions, which it announced last Friday:

Bloomberg: PetroChina seeks “breakthroughs” in overseas acquisitions in the second half by taking advantage of “favourable opportunities,” according to a presentation at the earnings briefing in Hong Kong today. Cnooc said this week it will step up exploration and acquisitions to increase reserves and meet demand in the country.

China National Petroleum Corp., which has an 86.7 per cent stake in PetroChina, proposed offering $13 billion to $14.5 billion for a controlling stake in Repsol YPF SA’s Argentine unit, three people familiar with the matter said last month.

On the potential bid for YPF stake, Zhou, who is also vice president at parent CNPC, said the company has “nothing to disclose at the moment.” CNPC will consider buying South American assets if “opportunities meet its needs,” he said.

Chinese companies have spent at least $13 billion acquiring oil assets overseas since December, including purchases in Singapore, Syria and Kazakhstan. The world’s second-biggest energy-consuming nation is securing supplies after crude prices fell and imports jumped fivefold in the last decade.

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