Energy-hungry China may not be done yet on the acquisition trail.
Hard on the heels of state-run CNOOC's [CEO 201.25 
7.24 (+3.73%) 
] $15.1 billion all-cash deal to acquire Canadian oil producer Nexen[NXY 25.81 0.18 (+0.7%) ], speculation is building that the Chinese oil major may make a consortium bid for BP's [BP 41.55 0.64 (+1.56%) ] 50 percent stake in TNK-BP,
Russia's third-largest oil company.
State oil firm OAO Rosneft announced on Tuesday that it would enter talks to buy the British oil major's 50 percent stake in TNK-BP, pitting the Kremlin against the four Russian oligarchs who own half of the Anglo-Russian oil firm. BP put the stake up for sale on June 1 after a breakdown in shareholder relations.
"The move that comes to mind would be BP selling its stake in TNK-BP with shareholder backing, to a consortium which would include Russian interests along with China's CNOOC and Sinopec Corp. (China's top refiner)," John Licata, Chief Energy Strategist, Blue Phoenix Inc., an independent energy and metals research company based in New York City.
7.24 (+3.73%) ] $15.1 billion all-cash deal to acquire Canadian oil producer Nexen[NXY 25.81 0.18 (+0.7%) ], speculation is building that the Chinese oil major may make a consortium bid for BP's [BP 41.55 0.64 (+1.56%) ] 50 percent stake in TNK-BP, Russia's third-largest oil company.
State oil firm OAO Rosneft announced on Tuesday that it would enter talks to buy the British oil major's 50 percent stake in TNK-BP, pitting the Kremlin against the four Russian oligarchs who own half of the Anglo-Russian oil firm. BP put the stake up for sale on June 1 after a breakdown in shareholder relations.
"The move that comes to mind would be BP selling its stake in TNK-BP with shareholder backing, to a consortium which would include Russian interests along with China's CNOOC and Sinopec Corp. (China's top refiner)," John Licata, Chief Energy Strategist, Blue Phoenix Inc., an independent energy and metals research company based in New York City.
"As for BP, the company has very strong ties to both CNOOC and Sinopec, so them considering a Chinese offer is not that far-fetched, especially since both parties expressed interest in the TNK JV," Licata said.
Plus, allowing the Chinese to be a part of BP TNK would be received positively in China, Licata added, and that would likely result in much stronger ties between the two countries. Ultimately, however, "it all will come down to economics," Licata admitted.
Source: CNBC
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