Beijing broadens South American strategy

摘要

China’s latest upstream acquisition in South America helps to diversify its risk exposure on the continent and potentially ties in with Beijing’s broader commodity strategy in the region. State-owned CNPC is buying the Peruvian upstream assets of Brazilian state-controlled Petrobras for $2.6bn. The purchase covers 100pc of block X, which produces about 16,000 b/d of oil equivalent (boe/d), as well as 100pc of block 58 and 46.16pc of neighbouring block 57 near the Camisea gas complex, which supply Peru’s LNG export facility. Blocks 58 and 57 together hold an estimated 6 tril-lion-8 trillion ft3 (170bn-226bn m3). Block 57 gas and liq-uids output is expected to start in early 2014.