The first purchase of China petroleum's "12th five-year plan" has taken a stake in Canada's oil sector

Date: 2017-09-13

       China national petroleum co., LTD. (hereinafter referred to as the "oil", 601857. SH, 0857. HK) announced on February 10, the company in order to c $5.4 billion (about 35.7 billion yuan) to buy Canada's energy company, majestic mountains region (Cutbank Ridge) 50% asset rights and interests.

       Petrochina international investment co., a subsidiary of petrochina co., LTD. (hereinafter referred to as "petrochina international") and the Canadian energy company have jointly signed a cooperation agreement. The majestic ridge oil region is located in British Columbia and alberta. Petrochina's assets include a 5.2 sq km exploration and production block, about 0.2 billion cubic metres of natural gas processing capacity per day, 3,400 km of pipelines and 1 underground gas storage depot.

       According to the agreement, the oil and Canadian energy companies in the majestic mountains will hold 50 per cent of their holdings. In the early stage, Canadian energy company will continue to undertake the joint venture and be responsible for the sales of related products. The joint venture will operate under the guidance of the joint management committee. The reporter learned that petrochina had been negotiating with Canadian energy companies since may last year, but petrochina was not the only bidder.

       One analyst told scidev.net that petrochina had the highest bid in the deal, and was eventually awarded a contract by the Canadian energy company. The joining of petrochina can provide sufficient funds for the development of the majestic mountains. Encana, President and chief executive Randy iresearch '(Randy Eresman), according to petrochina's joining can accelerate the project development, and use the more investment, through technological progress and determine the long-term development plan to improve operational efficiency. In fact, petrochina has been seeking opportunities to partner with major Canadian oil and gas companies for years, including in Canada's LNG and oil sands areas and opportunities for business cooperation in China.

       The acquisition is petrochina's first overseas acquisition of upstream resources in 2011. Twenty days ago, petrochina's parent company, CNPC, announced on its website that it would strengthen its acquisition of oil and gas assets in the global oil and gas market over the next five years. As early as 2008, petrochina first proposed the goal of building a comprehensive international energy company, and established the main direction of "obvious transformation of development mode". Accelerating the proportion of oil and gas assets abroad is regarded as one of the main attack directions.