Posted on 10/28/2015 2:39:28 PM PDT by Enlightened1
A Chinese investment firm is shelling out $1.3 billion to buy giant oil fields in Texas, reflecting growing interest from China in U.S. energy resources.
Yantai Xinchao will acquire oil assets in the western Texas Permian Basin that are currently owned by Tall City Exploration and Plymouth Petroleum. The deal is part of a larger transaction between Yantai Xinchao and a second Chinese firm, according to a stock exchange filing on Saturday.
The purchase, which includes oil fields in the state's Howard and Borden counties, has already been approved by the U.S. Committee on Foreign Investment, the filing said.
Many smaller Chinese oil and gas companies are looking for deals abroad as a way to combat tough competition from giant state-owned energy firms, and tight government regulations back home.
China's largest state-owned oil and gas firms, meanwhile, are snapping up resources in countries including Mozambique and Kazakhstan.
The Permian Basin, one of the oldest oil fields in the U.S., has enjoyed a revival as shale gas exploration and other drilling technology has improved.
Yantai Xinchao shares were suspended from trading last Friday to allow for the asset restructuring and oil field purchase. The company expects shares to be halted for about one month, and plans to release periodic updates on the restructuring, according to another stock exchange filing.
(Excerpt) Read more at money.cnn.com ...
That sounds like chicken feed, honestly.
Would China allow a Texas company to own Chinese oil fields in a reciprocal arrangement?
China already owns large swaths of oil and ag land in the US. Though, what I saw, they were buying in at a 30% level which keeps them below the radar.
In this case, it doesn’t say, they make it sound like they are buying outright.
They also bought an oilfield in Alberta recently. They are taking their paper dollars and trading them for hard assets.
In two counties and two oil companies may not be large holdings.
Could be a few pumpers and some storage tanks.
Bad deal for America unless we intend to nationalize the fields later. Appears Chinese are taking advantage of a temporary drop in oil prices so they can reap huge profits later.
Our Daddy never dreamed the oil on our land would be pumped by the Chinese. As all smart Texans do, we’ve kept the mineral rights on the home place, so we can only hope the Chinese do a good job.
China has been producing oil in quite a few different countries in recent years. 1.3 billion people or thereabouts? And many of them ready to get new vehicles and start driving. ...also in India and many other countries.
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