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| Economy |
| China To Drill For Oil In Gulf Of Mexico |
| 2009-11-04 |
| Norwegian energy group Statoil said Wednesday it was selling some of its US offshore oil assets to China's state-owned CNOOC, marking the first step by a Chinese energy major into the US market. The sale, announced along with Statoil's quarterly results, involves a limited stake for the China National Offshore Oil Corporation (CNOOC) in four exploitation licences for deepwater blocks bought in 2007 and 2008. "On 29 October Statoil signed a farm down agreement with the Chinese company CNOOC involving a number of Statoil's leases in the Gulf of Mexico," Statoil said in its third-quarter earnings statement. Statoil, which is 67 percent state-owned, declined to disclose the value of the transaction but spokesman Kai Nielsen told AFP that the size of the deal was "very small." In 2005, CNOOC had to cancel an 18.5-billion-dollar (12.4-billion-euro) deal with US firm Unocal because the politics of a communist country buying key US assets proved too controversial for Capitol Hill. "It came to signify the general struggle between the US and China," Kurt Barrow, a senior partner at energy consulting firm Purvin and Gertz in Singapore, told AFP at the time. "CNOOC may have lost the battle but it will not give up the war," Barrow added, illustrating analysts' predictions that the Chinese would take another bid at entering the US market, dominated by American and European companies with more political clout. The sale announced Wednesday took place in the context of a slowdown in offshore oil exploration caused by the global credit crunch, an environment in which "opposition to Chinese investment may be less likely," the Wall Street Journal said last month. CNOOC will be acquiring 20 percent of the Tucker prospect and a 10-percent stake on the licences of the Krakatoa, Cobra and Logan blocks, while Statoil will remain the operator of all four blocks. "In the Gulf of Mexico, it is customary to optimise the portfolio and spread risk involved in exploration drilling efforts," Statoil's spokesman said. |
| Posted by: Anonymoose |
| #9 I wouldn't get too worked up about this. It's just a business deal. They're providing capital for a minority (non-operating) interest in some relatively risky prospects. CNOOC is about as capitalist as any western company when it comes to things like this. And China has plenty of dollars they need to do something with. |
| Posted by: Glenmore 2009-11-04 20:10 |
| #8 WORLD NEWS > THE CRUDE TRUTH ABOUT WORLD OIL RESERVES. ARTIC > "OVERFLOWING IN OIL" = Earth is good for likely the whole of the 21st century. Today's "DIFFICULT OIL" will becom TOMORROW'S "CHEAP OIL" DUE TO CONTIN ADVANCES IN CHEAP + MORE ADVANCED OIL EXTRACTION TECHS. |
| Posted by: JosephMendiola 2009-11-04 20:04 |
| #7 This is beyond unbelievable. Does any environtwit here think the chicoms will be more careful than US firms? It's our resources in our backyard and we are letting them steal them becasue the US government is run by a trans-national, coward. OMG! We are sooooo screwed! |
| Posted by: NoMoreBS 2009-11-04 19:56 |
| #6 Maybe the Chinese can get permits to drill in California, ANWR and Florida too. At least someone would benefit from all that oil. |
| Posted by: Iblis 2009-11-04 19:12 |
| #5 They have just about given the store away. Of course they have. We don't deserve to be wealthier than others. |
| Posted by: lotp 2009-11-04 16:35 |
| #4 Geebus! I have to conclude that the pandemic of insanity is gripping the USA. |
| Posted by: twobyfour 2009-11-04 15:06 |
| #3 While our environmental geniuses in Congress are fiddling around with B.S. They have just about given the store away. |
| Posted by: JohnQC 2009-11-04 14:31 |
| #2 Our country is almost gone. |
| Posted by: armyguy 2009-11-04 13:22 |
| #1 "If we don't drill, the Chinese will." |
| Posted by: charger 2009-11-04 12:55 |