SINGAPORE/EDINBURGH, UK – China’s worldwide supply of crude oil through its national oil companies should reach a record level of 1 MM boe/d this year, says Wood Mackenzie. Going forward, Wood Mackenzie says China will be an aggressive purchaser of assets and also enter more partnerships with other national oil companies and international operators.
“In total the three Chinese NOCs have committed nearly $25 billion to asset and corporate acquisitions since April 2009, far exceeding previous annual spending,” says Norman Valentine, Senior Analyst on Wood Mackenzie’s Corporate Analysis team.
“Until recently Wood Mackenzie has characterized international expansion by the Asian NOCs as relatively conservative. Acquisitions over the last 12 months have changed the picture. We estimate that the three Chinese NOCs alone accounted for nearly 20% of global deal value in the first quarter of 2010.”
The report, “Chinese NOCs Step Up International Expansion” says “Domestic oil demand growth and concerns of over-reliance on Middle East imports are some of the drivers for Chinese NOCs to continue international portfolio expansion.”
China oil supply to hit 1 MM b/d says Wood Mackenzie