Business | Oil & Gas
Citic close to buying Kazakh oil firm Nations Energy for $2.2b
China is close to scooping up yet another foreign oil company as its overseas investment vehicle Citic Group is poised to buy a private Kazakhstan oil producer for about $2.2 billion.
- Reuters
- Published: 00:00 June 6, 2006
Singapore: China is close to scooping up yet another foreign oil company as its overseas investment vehicle Citic Group is poised to buy a private Kazakhstan oil producer for about $2.2 billion.
Citic Group, or China International Trust and Investment Corp, is close to buying Nations Energy in what would be China's third-largest overseas oil takeover, two sources familiar with the situation told Reuters yesterday.
"Most of the terms have been agreed," said one source, who asked not to be identified, adding that the plan to buy Nations had already won approval from China's government.
An acquisition by conglomerate Citic will mark another major push by Beijing to secure energy supplies to fuel its surging economy and comes as China's flagship oil companies have just clinched or are in the midst of sealing major overseas deals.
Calgary-headquartered Nations' main asset is a large field of heavy crude in Kazakhstan. With 4,000 employees, it is owned by Indonesian investors.
All-out: Sinopec to buy Russian unit
China's Sinopec is close to buying a mid-sized oil production company from Russia's TNK-BP, probably in a joint bid with Rosneft.
TNK-BP, which is half owned by Britain's BP, decided to sell its Udmurtneft unit as part of a restructuring, offering a opportunity to buy an asset producing 120,000 barrels per day, with reserves of one billion.
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