June 16, 2010 (Chinavestor) China's national oil companies such as Cnooc (NYSE:CEO), PetroChina (NYSE:PTR) and Sinopec (NYSE:SNP) have spent $25 billion on acquisitions over the past 12 months and that level of corporate activity could result in increased international production of 1 million barrels a day, according to a report issued by Wood Mackenzie.PetroChina (NYSE:PTR), China's largest oil company, said earlier this year it plans to spend $60 billion on acquisitions over the next decade. The three companies accounted for nearly 20% of all global mergers and acquisitions activity during the first quarter, Wood Mackenzie said.
The report said Chinese oil companies are likely to remain acquisitive due to rising domestic demand and Beijing's concerns regarding dependance on Middle East oil imports.
"With healthy cash-flow generation, strong balance sheets and implicit financial backing from the Chinese government, they remain well placed to continue overseas growth through asset purchases and corporate deals," Wood Mackenzie said.
The report said Chinese oil companies will maintain an "aggressive" approach to acquisitions and partnerships with other national oil companies and other oil producers.
CNOOC Ltd. (NYSE:CEO) has been aggressively bidding for offshore oil fields in Africa whereas Petrochina (NYSE:PTR) and Sinopec (NYSE:SNP) has been busy in central and south east Asia.
If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
