The China National Petroleum Corporation (CNPC) and India's Oil and Natural Gas Corporation (ONGC) have jointly reached an agreement with Petro-Canada to buy its oil assets in Syria, CNPC sources said yesterday.

It is the first joint bid made by a Chinese and an Indian company for overseas oil assets, said an official from CNPC, China's largest oil producer.

According to information published on Petro-Canada's website, both companies will buy assets for 484 million euros (US$576 million).

Al-Furat Petroleum Company operates the assets in Syria, a joint venture owned by the Syrian Petroleum Company, Syria Shell Petroleum Development B.V. (Shell) and Petro-Canada.

After the transaction, CNPC and ONGC will together hold the 38 percent of Al-Furat's assets currently held by Petro-Canada.

The deal is expected to close in early 2006, subject to the approval of the Syrian government, according to Petro-Canada.

ONGC was a major rival of CNPC during its bid for Canada-based PetroKazakhstan Inc. CNPC announced the successful close of the acquisition this October, the largest overseas acquisition ever made by a Chinese company.

During his visit to India this April, Premier Wen Jiabao signed a joint statement with Indian Prime Minister Manmohan Singh, which includes a statement that both countries will cooperate in the field of energy security and conservation by encouraging engagement in the survey and exploration of petroleum and natural gas resources in third countries.

The visit of the Indian Minister of Petroleum and Natural Gas Mani Shankar Aiyar to China next January is expected to further enhance such cooperation.

(Xinhua News Agency December 22, 2005)