NewsletterWeatherCommunity English home Forum Photo Gallery...

Newsletter
Weather
Community


English home Forum Photo Gallery Features Newsletter Archive About US Help Site Map languages Chinese Japanese French Spanish Russian Arabic


China
World
Opinion
Business
Sci-Edu
Culture/Life
Sports
Photos
Services

- Newsletter
- Online Community
- China Biz Info
- News Archive
- Feedback
- Voices of Readers
- Weather Forecast

RSS Feeds

- China
- Business
- World
- Sci-Edu
- Culture/Life
- Sports
- Photos
- Most Popular
- FM Briefings

Search


About China

- China at a glance
- China in brief 2004
- Chinese history
- Constitution
- Laws & regulations
- CPC & state organs
- Ethnic minorities
- Selected Works of Deng Xiaoping

Home >> Business
UPDATED: 08:41, July 14, 2006
CITIC Resources buys overseas oil stake



CITIC Resources, the Hong Kong-listed arm of conglomerate CITIC Group, made its first entry into an overseas oil asset yesterday by buying a 51 per cent stake in an Indonesian field for US$97.4 million.

"We have already entered into an agreement with KUFPEC Indonesia to buy from the latter a 51 per cent participating interest in the Seram Island Non-Bula Block," said Shou Xuancheng, Vice-Chairman of CITIC Resources.

As the company's first-ever overseas oil asset acquisition, the deal will allow CITIC Resources to explore, develop and produce oil from Seram Island Non-Bula Block until 2019.

Seram Island Non-Bula Block's principal oil field, Oseil Field, had an estimated gross oil reserve of about 39 million barrels by December 2005, including 7 million barrels of proven reserves. It produced an average of 4,300 barrels of oil per day in the first half of 2006.

Shou said that completion of the acquisition was now waiting on final approval from the Indonesian Government and its regulatory bodies.

"We have regular contact with the Indonesian government and other (regulatory) bodies we should be able to get the final approval at the end of August or early September," he said.

Shou, who worked as a senior oil exploration expert and consultant for China's top oil producer China National Petroleum Corp for over three decades before joining CITIC Resources, said that the new phase of Indonesia's oil field was the company's first step to explore oil reserves, particularly in Southeast Asia.

"Energy products such as oil will become our flagship product," said Shou, who told reporters yesterday that a team of about 30 oil professionals was working on the firm's future oil exploration plan in Southeast Asia.

"We will continue to observe and assess other oil fields in the region (Southeast Asia)," Shou said.

CITIC Resources will fund the Indonesian acquisition through internal resources and existing facilities.

The company currently has US$100 million cash in hand and another US$200 million worth of bank loans.

Source: China Daily



Comment on the story Tell a friend Print friendly format Save this




Recommendation
- Text Version
- RSS Feeds
- China Forum
- Newsletter
- People's Comment
- Most Popular
Related News
- CITIC Bank gets extra cash

- China Life buys CITIC Securities stake for US$581m

- China CITIC Bank seeking to list in HK by end of year, says president


Dic



Alibaba Directory
Alibaba China
China Suppliers



Copyright by People's Daily Online, all rights reserved