China, which wants overseas energy assets to fuel its economy, said yesterday that one of its biggest conglomerates had bought the Kazakhstan oil assets of a Canadian company for $US1.91 billion ($2.4 billion).
China’s CITIC Group bought the oil assets of Canada’s Nations Energy Company and granted KazMunai-Gas, Kazakhstan’s state-owned oil company, an option on a 50 per cent interest in the assets.
CITIC’s bid for Nations Energy’s Karazhanbas oilfield had been opposed by some in the former Soviet Central Asian republic, and the option for KMG may have been one way to win approval from Kazakhstan’s regulatory authorities.
China’s economy has seen double-digit growth in recent years, accompanied by increased demand for energy assets to improve its energy security.
