Petroleum chinese set foot in Latin America.

Petroleum chinese set foot in Latin America.

Editorial - BBC News.

15/03/2010

Oil rig

China's demand for oil continues to grow strongly.

The Chinese oil company CNOOC set foot in Latin America to buy a participation of U.S. $ 3.100 million for a 50% stake in the group Argentine oil and gas Bridas Corporation.

Yang Hua, CNOOC's chairman, stands for China National Offshore Oil Bridas Corporation said it was "a very good line of advanced go to Latin America. "

Bridas has oil reserves of 636 million barrels, with all production activities in Argentina, Bolivia and Chile.

The oil-hungry China continues to increase while its economy is growing strongly

"It's a sign of growing Chinese interest in Latin America as a source for its energy needs", said Marcel Justo, economic analyst BBC World.

"The Chinese government" says Justo, "is to sign major contracts oil with Venezuela and Brazil in addition to previous contracts with Ecuador, Peru and Colombia. The agreement with Bridas shows that this interest is far from exhausted. "

"By its phenomenal economic growth over the past 20 years China in 1993 became a net importer of oil. This will not change, " Said Justo.

"Amazing" Jump.

For his part, Neil Beveridge, an analyst at Sanford Bernstein, said that "the CNOOC deal is attractive in that it will make contributions strong in terms of reserves and production will help in the short term. "

The International Energy Agency (IEA) said recently that oil demand in China jumped 28% in January compared to the same month last year, growth that the IEA described as "amazing."

Bridas owns 40% of shares of Pan American Oil Company Energy. The other 60% is owned by British group BP.

CNOOC, the largest international oil producer in China, expects to complete purchase of shares in Bridas in mid of this year.