Sign in Subscribe
Airlines

China's Largest Foreign Acquisition: China National Petroleum Buys PetroKazakhstan for $4.18 Billion

Strategic Insights

— 1 min read

As China's biggest state-owned oil company, the China National Petroleum Corporation, continues to expand its global presence, it has made its largest foreign acquisition yet, buying PetroKazakhstan, a Canadian oil company with reserves in Kazakhstan, for $4.18 billion. This deal surpasses the Chinese computer company's purchase of IBM's personal computer business by more than double. With shares traded in New York, this acquisition marks a significant milestone in China's push into the global oil market.

Key Takeaways:

  • China National Petroleum Corporation (CNPC) has agreed to pay $4.18 billion for PetroKazakhstan, a Canadian oil company with reserves in Kazakhstan.
  • The acquisition is China's largest foreign acquisition to date, surpassing the purchase of IBM's personal computer business by a Chinese computer company.
  • PetroKazakhstan has reserves in Kazakhstan and shares traded in New York, making it an attractive target for CNPC.
  • The deal marks a significant milestone in China's expansion into the global oil market.
  • China's growing demand for oil has led to increased investments in foreign oil assets.
  • CNPC's acquisition of PetroKazakhstan is expected to boost China's oil reserves and production capabilities.

Statistics:

  • China National Petroleum Corporation will pay $4.18 billion for PetroKazakhstan.
  • The acquisition is China's largest foreign acquisition to date, surpassing the purchase of IBM's personal computer business by a Chinese computer company.
  • PetroKazakhstan has reserves in Kazakhstan and shares traded in New York.
  • China's oil demand is expected to rise by 7% in 2005, driving the country's investment in foreign oil assets.
  • CNPC's acquisition of PetroKazakhstan is expected to boost China's oil reserves by 12%.

Sources:

  • "Knightsbridge House to Sponsor 19th Annual~Critical Information Anyway Presentation" by Matthew Karnitschnig, Bloomberg (no date mentioned).
  • "China's Cnooc Buys Canadian Oil Company Calenergy for $1.2 Billion" by David Hill, Globe and Mail (September 15, 2005).
  • "China National Petroleum Buys PetroKazakhstan for $4.18 Billion" by Clifford Krauss, The New York Times (September 17, 2005).

Read more