China's global resource acquisition strategy, now Iraq PDF Print E-mail
Written by Stumo   
Tuesday, 30 June 2009

China is now eyeing oil resources in Iraq.

Chinese oil companies are expected to bid for the rights to develop Iraq’s oil fields in auctions that are set to start Tuesday, although Sinopec, the China National Petroleum Corporation and the China National Offshore Oil Corporation all declined to comment Monday about their bidding strategies.

In another sign of China’s interest in Iraqi oil fields, Sinopec, China’s refining giant, offered $7.22 billion on Wednesday to buy Addax Petroleum, a Swiss-Canadian company with operations in the Kurdistan region of Iraq and in West Africa. If Addax’s shareholders and Canadian regulators approve the deal, which Addax’s board is recommending, it would be China’s largest overseas energy acquisition.

The Australian Rio Tinto deal was blocked by the Rio Tinto board, though the Australian government was for it.  It will be interesting to see what the Canadians do.

Trackback(0)
Comments (2)add
feedSubscribe to this comment's feed
0
...
written by bob johns , July 01, 2009
One tragedy of it all is that the US enabled this attempt with 4,000 lives and billions of $ to transform/stabilize Iraq. How dumb can we get.... Paul Reagan's comment is on the mark as to diversification by China. Of course, we're broke and getting worse as the printing presses roll in DC.....
report abuse
vote down
vote up
Votes: +1
472
Dollar Reserves and Chinas Resource Buying Binge
written by Paul T. Reagan , June 30, 2009
I wonder if China is performing a giant hedge to protect value in its US dollar reserves. Since China accumulates excessive dollars to devalue the yuan - and since the US government is issuing more debt every day, creating worries of a devaluing dollar (with all our lenders), then perhaps China's resource buying spree is to hedge against that dollar depreciation by seeing a rise in the commodity prices that are priced in dollars. I'd expect $4/gallon gas as soon as US GDP turns positive.

Just wondering.
report abuse
vote down
vote up
Votes: +1
Write comment
smaller | bigger

busy
 
< Prev   Next >
[ Back ]

Related Articles

In the news

March 2-4, The Coalition for a Prosperous America

Legislative Fly-In

 

CPA will hold its Second Annual Legislative Fly-In on March 2-4, 2010.  This is a powerful opportunity for us to work together to advance trade reform in the halls of Congress.  We need to bring the concerns of the grass roots to our legislators.

This is efficient advocacy, well worth your time.  We make all the meeting arrangements with legislators or their staff, we put together materials, we plan a message, and we pack meetings together in a concentrated period of time.  You make a bigger impact with your time using only three of the 365 days in the year.

Click here to sign up for the CPA Fly In.

CPA has a special offer--limited time only: the first 50 registrants get a free copy of Ian Fletcher's new book: Free Trade Doesn't Work.  This is a highly acclaimed book about trade policy and the needed changes therein. 

Agenda:

March 2, 2010:  2p to 6p - Group meeting for training, talking points and team assignments

March 3-4, 2010:  Hill visits

Place:  Capitol Skyline Hotel, 10 I ("Eye") Street SW, Washington, DC 20024

Once registered, please call 202.488.7500 for hotel room reservations and ask for the CPA room block.  You should book for the evenings of March 2 and March 3.  CPA has negotiated discounted rates for a limited number of rooms at $129 per night plus tax.  Booking deadline is February 15, 2010, so reserve your room soon.

If you have questions about the events, please call Sara Haimowitz, Development Coordinator, at 413-203-1410 or email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it