93 replies to this topic

[Martian]

CNOOC Signs $1 Billion LNG Contract With GDF


GDF Suez's Chairman and CEO Gerard Mestrallet (right) and Wang Jiaxiang (left), president of CNOOC Gas and Power Group, sign the documents of the agreement during their agreement signing ceremony Saturday, Oct. 9, 2010. Chinese offshore oil and gas company CNOOC agreed Saturday to buy 2.6 million tons of liquefied natural gas from French utility GDF Suez SA. (AP Photo/Eugene Hoshiko)


LNG tanker at night

Cnooc Signs $1 Billion LNG Deal With GDF Suez - WSJ.com

"Cnooc Signs $1 Billion LNG Contract With GDF
OCTOBER 10, 2010, 3:26 A.M. ET

SHANGHAI—French power group GDF Suez will supply China National Offshore Oil Corp. with 2.6 million tons of liquefied natural gas over four years, in a deal valued at more than $1 billion, executives from the two companies said Saturday.

GDF Suez Chairman and Chief Executive Gerard Mestrallet, speaking in Shanghai at a signing ceremony for the agreement, said LNG deliveries to Cnooc would start in 2013.

Cnooc Assistant President Wang Jiaxiang said the price would be linked with crude oil prices at the delivery time, and that it was Cnooc's first medium-term LNG agreement.

Despite having secured around 16 million tons of annual LNG supplies, Cnooc is seeking strategic partners for more LNG supplies, Mr. Wang added. Cnooc has three operational LNG terminals and is planning to build several more.

Mestrallet said GDF Suez is also interested in making joint investments with Chinese companies in overseas markets.

GDF Suez Executive Vice President Jean-Marie Dauger said the Asia-Pacific region is a key growth area for the company's LNG business due to its robust demand, and that the company is also in talks with Pakistan regarding LNG supplies.

The agreement with Cnooc, China's largest offshore-oil and gas company, follows two other LNG supply deals made recently by the French company.

On Sept. 27, GDF Suez agreed a medium-term contract, valued at about $1 billion, with Korea's state-owned utility Korea Gas Corp., or Kogas, to supply 2.5 million metric tons of LNG. Kogas will import about one cargo a month starting this month through March 2014.

GDF Suez last month also signed a deal with Russia's natural-gas giant OAO Gazprom to supply it with 15 cargoes of LNG over a two-and-a-half year period starting from early 2011.

The China deal is the latest in a string of agreements China has signed with gas suppliers in line with efforts to become less dependent on coal.

China's LNG demand will surge to 46 million tons a year in 2020 from last year's total imports of 5.5 million tons, as its gas demand is forecast to rise from 93 billion cubic meters in 2009 to 444 billion cubic meters in 2030, according to industry consultancy Wood Mackenzie.

GDF Suez owns a fleet of 18 LNG carriers with a significant presence in regasification terminals in North and South America, in Europe, as well as in India, according to the company.

—Jing Yang"

[marchpole]

Cnooc to Pay $1 Billion in China’s Biggest U.S. Oil, Gas Deal
October 11, 2010, 4:51 AM EDT

http://www.businessweek.com/news/2010-10-1...l-gas-deal.html

Oct. 11 (Bloomberg) -- Cnooc Ltd. will pay $1.08 billion for a one-third stake in Chesapeake Energy Corp.’s Eagle Ford shale project in Texas, in the biggest acquisition of a U.S. oil and gas asset by a Chinese company.

Hong Kong-listed Cnooc plans to buy 33.3 percent of Chesapeake’s 600,000 oil and gas leasehold acres in Eagle Ford, the companies said in separate statements. Cnooc will also pay $1.08 billion of Chesapeake’s drilling costs in the basin, Chief Executive Officer Aubrey McClendon said in an interview.

The sale gives Cnooc its first energy asset in the U.S., five years after it dropped an $18.5 billion bid for Unocal Corp. amid political opposition. China’s third-largest oil company has spent at least $3.8 billion on overseas acquisitions in the past year as the nation’s energy demand surges.

“The deal reflects the ambition of Chinese companies to enter the global oil and gas industry, especially when China’s gas demand is expected to rise sharply,” Grace Liu, an energy analyst with Guotai Junan Securities in the southern city of Shenzhen, said by phone.

The deal with Cnooc was the second announced in one day for drilling rights in the Eagle Ford shale, which lies across a swath of southern Texas. Statoil ASA of Norway agreed to pay $843 million, or $10,900 an acre, to set up an equal joint venture in the region with Talisman Energy Inc. Cnooc is paying $10,800 an acre, which includes the upfront cash and drilling costs in the basin, McClendon said.

“Both deals, which were independent, do a nice job of confirming value in the area,” he said.

Capital Inflow

Cnooc jumped 4.5 percent to close at HK$16.80 in Hong Kong trading, the highest level since Oct. 30, 2007. The shares have advanced 38 percent this year, outpacing the 6.1 percent gain in the benchmark Hang Seng Index.

U.S. regulatory approval isn’t needed for the Eagle Ford stake purchase, Chesapeake spokesman Jim Gipson said by e-mail.

“This deal is completely consistent with what U.S. government has said they would like to see Chinese energy companies do, which is to provide capital into America to acquire minority interests and for American companies to use that capital to go out and develop American oil fields and to reduce oil imports,” McClendon said.

The Cnooc-Chesapeake deal would be the largest investment by a Chinese company in the U.S. oil and gas industry, after Hopu Investment Management Co. bought $100 million of Chesapeake’s convertible preferred shares in May, according to Bloomberg data.

‘A Good Deal’

Cnooc joins Reliance Industries Ltd. in buying shale assets in the U.S. as China and India compete for global energy resources. India’s biggest company by market value has spent $3.4 billion since April investing in U.S. shale gas, including a $1.3 billion purchase of areas in the Eagle Ford formation from Pioneer Natural Resources Co.

The acquisition by Cnooc equates to $10,900 an acre, similar to the $11,100 an acre that Reliance paid to Pioneer in June, Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., said in a report.

“Cnooc has struck a good deal given the assets are liquid- rich which is about three times more valuable than gas on an energy equivalent basis,” according to Beveridge.

Eagle Ford is estimated to have reserves equaling more than 80 billion barrels of oil. The formation is about 50 miles (80 kilometers) wide and 400 miles long, extending from Texas’s southern border to the east, according to the Railroad Commission of Texas, which regulates the oil industry. Eagle Ford delivers natural gas and “appears to produce much more oil” than other shale fields, the agency wrote on its website.

[Martian]

Venezuela approves Chinese role in Orinoco oil block





Venezuela approves Chinese role in Orinoco oil block | Reuters

"Venezuela approves Chinese role in Orinoco oil block
Mon Oct 11, 2010 12:20pm EDT

* Aims to produce 400,000 bpd from Junin block 4

* Deal is for 25 years, can be extended another 15

By Marianna Parraga

CARACAS, Oct 11 (Reuters) - Venezuela has formally approved China's involvement in a joint venture to tap 400,000 barrels per day (bpd) of oil from Junin block 4 in the South American OPEC member's vast Orinoco extra heavy crude belt.

President Hugo Chavez's government signed a raft of deals with foreign companies this year to set up several Orinoco projects that are slated to add 2.1 million bpd of new production and bring Venezuela some $80 billion in investment.

Its state oil company PDVSA holds a 60 percent stake in each project. China National Petroleum Corp has a 40 percent interest in Junin block 4, where production is expected to start at 50,000 bpd in 2012 and reach its maximum by 2016, when a new upgrader in the area is due to begin work. Factbox: [ID:nN11204108]

"The joint venture will produce up to 400,000 bpd of extra heavy crude ... for a period of 25 years from the start of operations," said an agreement between PDVSA and CNPC published on Monday in the Venezuelan government's Official Gazette.

It said CNPC would pay a $900 million bonus fee in eight tranches, the first to be delivered once Venezuela has given the joint venture the legal right to exploit the area. It was not immediately clear when that would happen.

The deal can be extended for a further 15 years if both parties meet the agreed investment plan, the Gazette notice said, and there is a tax relief provision if those investments fail to be recouped from production in seven years.

China's rapidly growing economy is hungry for access to energy resources around the world, and diplomatic ties between Caracas and Beijing have expanded quickly in recent years. That includes increasing cooperation outside the oil sector.

Last month, Venezuela said a Chinese firm would refurbish the country's main port. China also built and launched a $400 million communications satellite for Venezuela in 2008, reducing its dependence on U.S. and European satellites.

In addition, the Chavez government has bought Chinese radar equipment to monitor its borders, and Beijing provided it with military training jets after Washington imposed an embargo in 2006 on sales of U.S. weapons parts to Venezuela.

Other companies with interests in Venezuela's Orinoco belt include Chevron (CVX.N) of the United States, Italy's Eni (ENI.MI), Spain's Repsol (REP.MC) and a Russian consortium of Rosneft (ROSN.MM), Gazprom (GAZP.MM), Lukoil (LKOH.MM), TNK-BP (TNBPI.RTS) and Surgutneftegaz (SNGS.MM).

(Writing by Daniel Wallis; Editing by Dale Hudson)"

[Martian]

China oil, gas, and petrochemicals -- Oct. 18


City of Hohhot is located in the province of Inner Mongolia, China.


Jin Hui hotel in Hohhot, China

Top stories of the day: China oil, gas and petrochemicals -- Oct. 18

"Top stories of the day: China oil, gas and petrochemicals -- Oct. 18
Sunday, October 17, 2010 11:37 PM

BEIJING, Oct. 18, 2010 (Xinhua News Agency) -- The following are top stories in China's oil, gas and petrochemical sector on Monday:

1. The Chinese capital Beijing is to buy 4 billion cubic meters of natural gas annually from a coal-to-gas project located in Hohhot of China's northern Inner Mongolia, Beijing Business News reported on Monday.

Beijing Enterprises Group Co., Ltd., a Beijing-based industrial company, has inked an agreement with Hohhot city government during the weekend to jointly invest some 30 billion yuan on the coal-to-gas project. The project will become the second largest natural gas supply source for Beijing and the first time the capital city uses the gas made from coal.

2. Dina-2 gasfield, the largest gas producing unit of PetroChina's flagship Tarim oilfield, has raised its daily natural gas output from 8 million cubic meters to 9.4 million cubic meters since the beginning of October 2010 in a bid to ensure gas supply during the winter peak season.

PetroChina (PTR.NYSE; 601857.SH; 0857.HK), China's largest oil and gas producer, said in a statement available on its website on Monday that the gasfield will further increase its daily natural gas output to over 12 million cubic meters later in 2010, making the gas producing unit's total annual production rise to 4 billion cubic meters in the year.

3. Sulige gasfield, China's largest gas producing unit, has produced 8.021 billion cubic meters of natural gas by Oct. 15, 2010, as the PetroChina's major gas producing unit has started full swing production to meet increasing gas demands over the coming winter.

According to a statement posted in the website of PetroChina, the gasfield has put 2,676 gas wells into operation with a total daily gas output of 31 million cubic meters.

4. China National Petroleum Corporation (CNPC), the parent company of PetroChina, has discovered a significant gasfield in Central Asia's Turkmenistan with an estimated gas reserve of 1.6 trillion cubic meters, according to Asia Times reports reaching here on Monday.

The report, which did not name the source, said that the discovery is made in Amu Darya River of Turkmenistan.

(Edited by Qiu Jun, Qiujun@xinhua.org)
(Source: Quotemedia)"


Map of China's oil and gas fields


Workers of the No. one oil extracting unit of the Changqing oilfield inspect oil tanks in Yan'an, northwest China's Shaanxi province on Dec. 16, 2007. (Xinhua/Tao Ming)

PetroChina Sulige gasfield produces 8.02bln cu.m of gas since operation

"PetroChina Sulige gasfield produces 8.02 bln cu.m of gas since operation
Monday, October 18, 2010 3:40 AM

BEIJING, Oct. 18, 2010 (Xinhua News Agency) -- China's largest gas production site, the Sulige gasfield in PetroChina's Changqing oilfield, has produced 8.021 billion cubic meters of natural gas as of October 15, 2010. The gasfield started full-swing production to meet increasing gas demands over the coming winter.

According to a statement posted in the website of PetroChina (PTR.NYSE; 601857.SH; 00857.HK), the Sulige gasfield has put 2,676 gas wells into operation since the beginning of 2010 with a total daily gas output of 31 million cubic meters, up 43 percent over the same period in 2009.

Changqing oilfield is the major natural gas supply source for Beijing, the capital city of China. PetroChina has already built two Shaanxi-to-Beijing natural gas pipelines connecting the gas producing field and the gas consumers in Beijing with a total annual capacity of 20 billion cubic meters.

The third Shaanxi-to-Beijing natural gas pipeline is to enter into operation in the fourth quarter in 2010 with additional annual gas supply capacity of 15 billion cubic meters.

(Edited by Qiu Jun, Qiujun@xinhua.org)
(Source: Quotemedia)"


PetroChina is either the second- or third-largest company in the world by market value.

Apple Briefly Became Second Most Valuable Company - BusinessWeek

"Apple Briefly Became Second Most Valuable Company
September 23, 2010, 4:57 PM EDT
By Adam Satariano

(Updates valuations starting in second paragraph.)

Sept. 23 (Bloomberg) -- Apple Inc. briefly overtook PetroChina Co. to become the second-biggest company in the world by market value, lifted by investors betting on growth prospects for the iPhone, Macintosh and iPad.

Apple climbed as high as $292.76 in intraday trading on the Nasdaq Stock Market, giving it a market value of $267.5 billion, the second-highest company behind Exxon Mobil Corp. By 4 p.m. New York time, Apple slipped to $288.92, putting the company’s value at $263.9 billion, less than PetroChina’s $265.5 billion valuation."

[Martian]

PetroChina Completes Dalian LNG Wharf

Dalian Tours, Dalian Travel Package, Dalian Side Tours


"Dalian, one of China's most vibrant and modern cities, is located on the eastern bank of the Eurasian Continent and on the southernmost part of the Liaodong Peninsula in Liaoning Province in northeastern China.

With the ideal and superb geographical location of being surrounded by the Yellow Sea to the east and the Bohai Sea to the west, Dalian is an important hub of communications in Northern China and an important international shipping center in the northeast of Asia."

PetroChina Completes Dalian LNG Wharf | LNG World News

"PetroChina Completes Dalian LNG Wharf
Posted on Sept. 2, 2010
LNG World News



PetroChina Co Ltd has completed construction of its first liquefied natural gas (LNG) wharf in the northern city of Dalian, the China Petroleum Daily reported on Thursday.

The 446-metre wharf, which includes a 150-metre trestle bridge, could dock the largest LNG carrier in the world, the company newspaper said.

The Dalian LNG project, comprising a wharf, receiving terminal and gas pipelines, is scheduled to be operational in April 2011.

PetroChina is expected to sell its 75 percent stake in the project to Kunlun Energy, a company controlled by PetroChina, and is diversifying its business into LNG supply, vehicle fuel gas and city gas from oil exploration.

Source: CNBC, September 2, 2010"

[aziqbal]

fantasic news from Chinas energy sector

[Martian]

Test run of China-Russia oil pipeline successful

http://english.people.com.cn/90001/90783/91300/7188151.html

Test run of China-Russia oil pipeline successful
11:25, November 04, 2010


Photo taken on Nov. 3, 2010 shows crude oil discharge trestle and storage zone for the last terminal of the China-Russia crude oil pipeline in Daqing, northeast China's Heilongjiang Province. The test run of the China-Russia crude oil pipeline has been successful on Tuesday. The first shipment, after traveling 13 hours from Russia's Dzhalinda, entered oil storage in Mohe, the first of terminal of the pipeline in China, at around 8 a.m. Tuesday. Monthly crude shipments through the China-Russia pipeline are forecast to range from 250,000 to 300,000 tons during the test run period from November to December. The pipeline, which is designed to transport 150 million tons of crude oil per year from 2011 to 2030, will enter full operation in Jan. 2011. (Xinhua/Xia Shigang)


A technician records data at the oil storage facility in Mohe, northeast China's Heilongjiang Province, on Nov. 1, 2010. (Xinhua/Jin Jiangshan)


Photo taken on Nov. 3, 2010 shows the crude-oil storage zone for the last terminal of the China-Russia crude oil pipeline in Daqing, northeast China's Heilongjiang Province. (Xinhua/Jin Jiangshan)


Workers show the first bottle of crude oil transported through the China-Russia crude oil pipeline at the oil storage facility in Mohe, northeast China's Heilongjiang Province, on Nov. 2, 2010. (Xinhua/Jin Jiangshan)


Chinese and Russian technicians hold discussions at the oil storage facility in Mohe, northeast China's Heilongjiang Province, on Nov. 1, 2010. (Xinhua/Jin Jiangshan)

[Martian]

China's 1st LNG cold energy Air Separation Unit facility begins operation in Putian


Air Separation Units:  The atmosphere consists of approximately 78% nitrogen (N2), 21% oxygen (O2), and 1% argon (Ar). Several industries require pure nitrogen, oxygen, or argon for their production processes. Cryogenic Air Separation is the process that enables the separation of these compounds.

It filters dust and moisture from the air. Several compressor stages and heat-exchangers increase the pressure of the filtered air; resulting in liquid air. After the last stage, the liquid air moves to a distillation column. Liquid nitrogen exits at the top of the distillation column, while the liquid oxygen and argon come out at the bottom. The now maximally-compacted substances may then be transported to the customer. If the customer wishes to evaporate the substances, for example into gas required for a production process, he will need heat-exchangers.

http://www.whatsonxiamen.com/news15727.html

"China's 1st LNG cold energy ASU facility begins operation in Putian
Updated: 13 Nov 2010

Air Products said on Nov. 11 that China's first air separation unit (ASU) facility using liquefied natural gas (LNG) cold energy to produce industrial gases is up and running.

Located in Putian, Fujian province, the plant is a joint venture between Air Products and CNOOC Energy Technology & Services Limited, a subsidiary of China National Offshore Oil Corp (CNOOC).

The ASU plant is the first of its kind in China and is capable of producing more than 600 tons per day of liquid oxygen, nitrogen, and argon.

It is designed to liquefy air at low temperatures by using cold energy released during the LNG re-gasification process to produce industrial gas products.

SOURCE: China Daily"

[Martian]

Sinopec to Join Chevron Gas Project


The East Kalimantan concession includes the Ganal Block that covers the Gehem and Gendalo gasfields and the Rapak Block that includes the Ranggas gasfield. According to press reports, Chevron has said production from the blocks is expected to start in 2016.

Sinopec to Join Chevron Gas Project - WSJ.com

"Sinopec to Join Chevron Gas Project
DECEMBER 2, 2010, 3:30 A.M. ET
By DAVID WINNING

China Petrochemical Corp. has struck a deal with Chevron Corp. to join a $6 billion-plus deepwater natural gas project off Indonesia, a person familiar with the matter said Thursday, in the latest push by Chinese companies to secure overseas energy assets.

China Petrochemical, known as Sinopec Group, signed an agreement with Chevron in Singapore on Tuesday to take an 18% stake in each of three deep-sea blocks off East Kalimantan that will underpin the proposed Gendalo-Gehem project, said the person, without disclosing financial terms.

The deal comes days after Cnooc Ltd.'s joint venture in Argentina paid $7.06 billion to take full control of the country's second-biggest oil and gas producer from BP PLC.

Chinese companies are increasingly targeting natural gas projects as the country efforts to reduce reliance on coal and foreign oil, which have made cities such as Shanghai among the smoggiest in the world.

State companies have invested heavily in building up infrastructure in China to funnel in foreign gas, including pipelines from Central and Southeast Asia and multibillion dollar terminals to receive ships carrying liquefied natural gas along the eastern coast.

The International Energy Agency predicts China's gas consumption will more than quadruple in the 2008-2035 period. Much of this demand will be met by overseas projects—the IEA forecasts China's annual natural gas imports will grow from around 176 billion cubic feet in 2008 to more than seven trillion cubic feet in 2035, accounting for 40% of the growth in inter-regional trade.

Sinopec has lagged behind domestic peers PetroChina Co. and Cnooc in buying overseas gas assets, partly because it has been slower to kick off construction of LNG receiving terminals.

As Asia's largest refiner, Sinopec's earnings are also more exposed to swings in oil prices and up to now it has concentrated on doing deals that can reduce its crude import costs.

Sinopec Group is the state-owned parent of Hong Kong and Shanghai-listed China Petroleum & Chemical Corp., which also lists American depository receipts in New York. Sinopec declined to comment on the deal in Indonesia.

San Ramon, Calif.-based Chevron said in November last year it was seeking partners for the Gendalo-Gehem project in order to mitigate risk in the venture, and hoped to have an agreement in place within a year.

Chevron, one of the largest oil and gas producers in Indonesia, describes Gendalo-Gehem as one of its "major capital projects," but has yet to carry out engineering and design work.

This means first gas output isn't likely before the second half of the decade even if there are no delays to engineering work, construction, or the approvals process with the Indonesian government.

Gendalo-Gehem aims to produce around 1.1 billion cubic feet of natural gas and 31,000 barrels of condensate—a petroleum liquid—a day at its peak, according to Chevron's 2009 annual report.

The deal will help fill a gap in Sinopec's technical armory, as the Gendalo-Gehem project will tap gas deposits beneath 6,000 feet of water. Much of the Chinese company's current oil and gas output is from shallow-water fields.

The person, who didn't wish to be named, said the farm-in agreement requires regulatory approvals in Indonesia and China.

Chevron's stake in the Rapak and Ganal blocks will fall to 62% when the deal is completed.

Italy's Eni S.p.A. owns 20% of both licenses, while the Indonesian government has the right to take a 10% interest, likely through state-owned oil and gas producer PT Pertamina.

Chevron's interest in the Makassar Strait block will fall to 72% when the deal with Sinopec closes. Pertamina has a 10% stake in this block.

Write to David Winning at david.winning@dowjones.com"

[Martian]

Sinopec Buys Occidental Unit for $2.45 Billion


Map of "Santa Cruz, Mendoza and Chubut provinces in Argentina"

Sinopec Buys Occidental Unit for $2.45 Billion - WSJ.com

"Sinopec Buys Occidental Unit for $2.45 Billion
DECEMBER 9, 2010, 10:00 P.M. ET

BEIJING—China Petrochemical Corp., known as Sinopec Group, said Friday it is acquiring 100% of Occidental Petroleum Corp.'s Argentina subsidiary for $2.45 billion.

Sinopec said in a statement it is acquiring all the assets of Occidental Argentina Exploration & Production Inc. and certain affiliates, collectively known as Occidental Argentina.

The acquisition comes less than two weeks after the international arm of China National Offshore Oil Co., Cnooc International Ltd., and Bridas Energy Holdings, agreed to pay BP PLC $7.06 billion for its 60% stake in Argentine-based Pan American Energy LLC.

U.S.-based Occidental Petroleum wasn't immediately available for comment.

Occidental Argentina has gross proven and probable reserves of 393 million barrels of oil equivalent with an interest in 23 production and exploration concessions in Santa Cruz, Mendoza and Chubut provinces in Argentina, of which 19 are operated by the company.

The company's production from the 22 producing concessions last year totaled over 51,000 barrels of oil equivalent per day.

The deal is Sinopec's first investment in Argentina's upstream oil and gas sector, and is subject to government approvals.

—Wan Xu contributed to this article."

[Martian]

Canada's Encana Attracts PetroChina in $5.43 billion deal


Canada's Encana land in North America


Encana assets in Canada

Encana, PetroChina in Development Deal - WSJ.com

"Encana Attracts Chinese Partner
FEBRUARY 10, 2011
By EDWARD WELSCH


An Encana natural-gas well near Alix, Alberta, Canada. (Photo: Bloomberg News)

Encana Corp. said Wednesday it entered a 5.4 billion-Canadian-dollar (US$5.43 billion) deal with PetroChina Co. to develop hard-to-reach natural-gas reserves, further deepening the energy ties between Canada and China.

The agreement comes as Canadian oil and gas producers are seeking customers outside North America, which is currently awash in both fuels. In particular, they are targeting Asia, where energy prices are higher and demand is growing quickly.

Calgary-based Encana, one of North America's largest gas producers, said it and PetroChina will split the costs and profits from developing so-called shale and deep gas wells in a 635,000-acre area stretched across northeastern British Columbia and northwestern Alberta. The area, called Cutbank Ridge, has proven reserves of about 1 trillion cubic feet of natural gas and current production of 255 million cubic feet a day.

Encana and PetroChina signed a memorandum of understanding last summer to jointly develop shale gas properties. Encana executives have said they are actively seeking partnerships with foreign investors to help fund the development of a huge inventory of shale gas in western Canada.

"Fundamentally we have a very large resource potential on our lands—more than we can develop on our own," said Encana spokesman Alan Boras.

In a statement on its website, PetroChina said it had been seeking for years to work with major Canadian energy companies, and expects the Encana deal "to provide a platform for entering the major market in North America."

Encana shares, which were down 1.9% Wednesday in 4 p.m. composite trading on the New York Stock Exchange, surged nearly 11% to $34.15 in the after-hours market following news of the PetroChina deal.

The company took its first steps toward teaming up with Asian energy companies last March when it signed a C$565 million development deal, called a "farm in," with Korea Gas Corp., in which the state-owned South Korean utility agreed to shoulder the cost of additional exploration on Encana's land in exchange for a cut of the production.

A similar farm-in agreement was discussed with PetroChina, Mr. Boras said, but the state-controlled Chinese energy company pushed for a direct stake in the company's natural-gas assets.

PetroChina's last major deal in Canada was the C$1.9 billion acquisition in 2009 of a 60% stake in two oil-sands projects in northeastern Alberta owned by Athabasca Oil Sands Corp.

Encana's pact with PetroChina would be one of the largest foreign deals involving a Canadian resource since Canada's federal government struck down BHP Billiton Ltd.'s $38.6 billion attempted hostile takeover of Potash Corp. of Saskatchewan last year, ruling that the world's largest potash producer was of strategic interest to Canada.

However, the type of investment involved in the Encana deal isn't considered an acquisition under Canadian regulations, and so wouldn't be subject to the same degree of scrutiny.

Encana is scheduled to report its fourth-quarter and full-year results Thursday.

In addition to natural-gas properties, the joint venture with PetroChina includes about 700 million cubic feet per day of processing capacity, about 2,100 miles of pipelines and a gas-storage facility. The closing date of the deal depends on various government and regulatory approvals.

Encana owns the licenses covering a large territory in some of the most prolific shale gas basins in both the U.S. and Canada—11.7 million acres in total. It produces 3.3 billion cubic feet of natural gas a day.

As Canada is the No. 1 oil exporter to the U.S., most Canadian energy producers depend on demand from their southern neighbor for the bulk of their revenue. However, Canada has come under criticism for pollution caused by extraction from oil sands, and U.S. lawmakers have raised questions about the safety of a proposed oil pipeline expansion.

As a result, Canada has its eye on developing energy trade with Asia. Two proposed oil-pipeline projects and one proposed liquefied-natural-gas facility would ship energy to Asia from Canada's west coast."

[xyxmt]

Now compare all this with our shuper power....omg i will die laughing

[Martian]

Australia approves huge $7.9 billion Chinese coal takeover

"Australia approves huge Chinese coal takeover
By Amy Coopes (AFP) – 7 hours ago


A giant dump truck descends into the Ashton open cut coal mine (AFP/File, Torsten Blackwood)

SYDNEY — Australia on Thursday cleared the way for China's Yancoal to take over miner Gloucester Coal in a multi-billion-dollar deal that gives Beijing a greater foothold in the resource-rich country.

Treasurer Wayne Swan said the country's foreign investments watchdog had green-lighted the deal under strict conditions that the new company remain headquartered in Australia and list on the stock exchange by the end of 2012.

Regulatory approval was the major hurdle to the deal, which will lead to the creation of Australia's largest listed coal firm, which local media said would be valued at $8-$9 billion, with resources of some 3.4 billion tonnes.

Under the proposal Gloucester's shareholders are to receive about Aus$639 million and a 22 percent stake in the new combined company, which has forecast production of 25 million tonnes per annum by 2016.

The deal -- which was valued at Aus$2.2 billion when announced in December -- is China's latest foray into Australia's mining market as its leaders try to secure resources for its rapidly expanding economy, the world's second largest.

However, Beijing's interest in Australia has raised concerns over China's influence in the country, which Swan attempted to soothe by placing several conditions on the merger.

"I approve the application by Yancoal Australia Limited to merge with Gloucester Coal Limited, subject to several legally enforceable conditions... that reflect the significance of coal production to the Australian economy," Swan said in a statement.

"Yanzhou's (Yancoal's parent company) investment in the Australian coal industry will allow for the further development of Australia's coal deposits, which will have positive impacts on employment and growth in the sector and more broadly for the economy."

Yancoal, the Australian subsidiary of China's Yanzhou Coal, has described the as-yet-unnamed new firm as the "leading listed pure-play coal company in Australia and the ninth-largest globally based on reserves."

It comes amid furious consolidation in the coal industry as fast-industrialising China and India hunt for energy resources to fuel their booming economies.

Australia's coal industry is dominated by major global players BHP Billiton, Rio Tinto and Xstrata, but smaller firms are being targeted as competition heats up.

US-based Peabody Energy, the world's largest private coal miner, snapped up Australia's Macarthur Coal in November in a deal worth almost Aus$5 billion.

Swan said Yanzhou would have to reduce its ownership of the new company to less than 70 percent by the end of 2013 and also sell down its share of two other firms excluded from the merger, Syntech Resources and Premier Coal.

He warned that all coal produced by the new firm would have to be marketed on "arms-length" terms from the Chinese government and sold at international benchmark rates.

State-owned Yanzhou, China's third-largest listed coal company by output, approached Gloucester after taking over coal miner Felix Resources in 2009 in a US$3.2 billion deal -- at the time the biggest by a Chinese firm in Australia.

The Felix tie-up followed a series of knock-backs and withdrawal of Chinese deals after the foreign investment board imposed strict conditions, inflaming tensions which followed Rio Tinto snubbing a US$19.5 billion Chinalco deal."

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Reference for US$7.9 billion transaction: Yanzhou-Gloucester Merger Given Green Light - Deal Journal - WSJ

"The merger, which was announced in December, will create Australia’s largest independently listed coal producer with a market value of up to A$8 billion (US$7.9 billion)."

[Martian]

China to employ 1st deep-sea rig in South China Sea



A 3,000-meter deepwater jumbo oil drilling platform was delivered in Shanghai Monday to China National Offshore Oil Corp. (CNOOC), the country's largest offshore oil producer, the latest step for China as it seeks more energy from the ocean.

China to employ 1st deep-sea rig in South China Sea | Reuters

"China to employ 1st deep-sea rig in South China Sea
BEIJING | Thu May 3, 2012 2:28am EDT

May 3 (Reuters) - China will formally employ its first home-made, deep-sea semi-submersible drilling platform in the east part of South China Sea on May 9, marking the beginning of the country's deepwater oil strategy, the National Energy Administration said.

Ocean Oil 981 will be used to drill the Liwan 6-1-1 well, which has water depth of 1,500 metres (5,000 feet) and designed well depth of 2,371 metres (7,780 feet), the administration said in a report on its website (?????) dated April 28.

The drill is scheduled to take 56.5 days.

Ocean Oil 981, the construction of which took six years, was towed to the east part of South China Sea on Feb. 21 and drilled the Liuhua 29-2-1 well in a trial operation, the administration said.

The Lianhua 29-2-1 has designed well depth of 3,230 metres in ocean waters with depth of 753.3 metres.

State-run China National Offshore Oil Corp (CNOOC) is the owner and operator of the deep-sea rig. (Reporting by Jim Bai and David Stanway; Editing by Robert Birsel)"

[Note: Picture and caption source at China Exclusive: After 3 years and nearly a billion dollars, jumbo deepwater rig delivered to CNOOC CCTV News - CNTV English]