Wednesday, February 2, 2011

Unocal-II in 2011 - Will Chinese NOCs do a big acquisition in US in 2011?


Chinese/Asian NOCs acquisitions in 2010
Chinese/Asian NOCs were eager buyers in 2010, accounting for 19% of global activity, or $40bn, having grown steadily from 1% since 2007.  Key region was South America  with 4 of the top 5 deals, including Sinopec’s JV with Repsol, Brazil and CNOOC’s JV with Bridas for Pan American Energy.


In 2010, Chinese NOCs (Sinopec, CNOOC, CNPC, Sinochem and China Investment Corp) did acquisitions amounting to $34bn, Other Asian NOCs (KNOC & PTTEP) did acquisitions amounting to  $6bn.

Four of the top five deals by Chinese NOCs were in South America. Clearly this was their focus region for growth in 2010:
  • Sinpopec bought 40% of Repsol’s Brazilian business, marking its entry into Brazil’s pre-salt resources. Among other assets, Sinopec now has an interest in the Guara and Carioca discoveries.
  • CNOOC on the other hand grabbed a piece of mature producing assets in Argentina through the acquisition of a net 50% interest (through two deals) in Pan American Energy.
  • Relatively smaller Sinochem, went after heavy oil by acquiring a 40% interest in Statoil’s Peregrino field offshore Brazil
Apart from South America, the Chinese also acquired assets in Canada, US, Angola, Australia, Uganda, Indonesia, and Colombia.






























Chinese have restricted to JVs in US in 2010
Eagleford JV with Chesapeake was the only deal by Chinese NOCs in US.








So far Chinese have restricted to JVs and small acquisitions in US, will they be doing a corporate acquisition in 2011?



We have also recently published a report for E&P Business Development and New Ventures professionals working on deals globally. This report provides information on $93 billion of global oil and gas assets on the market.
The report provides details on ~500 opportunities:
·         Assets for sale
·         Corporate M&A opportunities
·         JV opportunities
·         Exploration farm-ins
You can view a sample copy of this report at http://www.derrickpetroleum.com/reports2.html


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