China National Petroleum Corporation (CNPC), China's
biggest oil producer, announced on Monday that it has made an offer
of US$4.18 billion for PetroKazakhstan (PK) through its wholly
owned subsidiary China National Petroleum Corporation International
(CNPCI).
Registered in Canada, PK is a vertically integrated
international energy company listed on the stock exchanges in the
United States, Canada, the United Kingdom, Germany and
Kazakhstan.
With an annual crude oil output of 7 million tons, the company's
oil and gas assets are located in Kazakhstan, which shares a border
with China.
According to company sources, CNPC has been involved in the oil
and gas business in Kazakhstan for years, fostering business
relations with the government of Kazakhstan and Kaz Munai Gaz, the
national oil and gas company.
According to a CNPC press release, the acquisition is a
strategic one for the expansion of CNPC's business in Kazakhstan,
and it serves as part of CNPC's international development
strategy.
CNPC's unique technological competitive strength and management
experience will be fully utilized to upgrade the value of the
assets acquired, and the acquisition would bring added value to
shareholders of PetroKazakhstan, according to the press
release.
(Xinhua News Agency August 23, 2005)