The lower oil price environment has encouraged some Chinese private-sector firms to look for distressed upstream assets overseas, despite many with production interests outside China losing money. Lower oil prices present low-cost investment opportunities, Shanghai-listed Geo-Jade Petroleum says. It secured 3,000 b/d Kazakh producer Kozhan for 63.9bn tenge ($340mn) last year. It agreed in December to pay Kazakh firm Sozak Oil and Gas’ exploration and development costs at a block in southern Kazakhstan in exchange for a 51pc share of production. And it has signed preliminary agreements worth 8.2bn yuan ($1.3bn) to take over investment company Shanghai Longzhou Xinke (SLX). SLX is in the process of acquiring Toronto-listed Bankers Petroleum, which operates about 20,000 b/d of heavy oil production in Albania, and Russian gas firm Novatek’s 51pc stake in the 70,000 b/d Yargeo joint venture in Russia. It is now looking to acquire a 65pc stake in Kazakh firm North Caspian Petroleum.
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