China to Buy Argentina’s Oil stakes
It is an open secret that China needs a lot more power. Not in the political or economic sense but from a infrastructural sense. That is why they are looking for any oil stake which is available anywhere. That is why the China National Offshore Oil Corporation (CNOOC) is paying $3.1bn (£2bn) for a 50% stake in Argentine oil and gas group Bridas Corporation. CNOOC president Yang Hua said Bridas was “a very good beachhead for us to enter Latin America”.
Bridas has proven oil reserves of 636 million barrels, with production activities across Argentina, Bolivia and Chile. China’s demand for oil is continuing to surge as its economy grows strongly.
“The deal is attractive for CNOOC in the sense that it’s going to be strongly accretive in terms of reserves and adds to production in the near term,” according to Neil Beveridge, senior oil analyst, Sanford Bernstein.
