China: Getting into the oil action

Brittany Sturdivant
October 2, 2008
Energy and Oil
9:40pm

Yesterday two Chinese corporations , China Cnooc and China Petrochemical corporation teamed up to gain access to a oil field in offshore Angola. They plan on spending about $1.8 billion on the deal, but I think it will extremely benefit both countries since other countries that are involved in the deal have showed great improvement. The Marathon Oil company that already owns the oil field is allowing both companies a 20% interest in deepwater Block 32 that has yielded 11 successful wells. Along with the oil plan, Cnooc has teamed up with companies in Trinidad and Tobago so that they could gain assets to natural gas. This is a wonderful move for the company and I think its great that their taking advantage of this now and not waiting until later to merge with corporations to gain their assets because sooner or later they will not have the option or to do this. China saw how well the other countries were doing so they decided to step up and see if they could benefit from this as well. I think it’s great that these companies are taking the plunge and trying to get involved like other countries are already doing. Some companies in Brazil and India have tried to gain assets to the oil, but they were unsuccessful. I wonder why these companies in China were successful in gaining the assets and the other companies in Brazil and India were not. I’m guessing the numbers that these companies were putting forth were better than the numbers of the other companies.