CNPC To Acquire Exploration Company in Oman

China National Petroleum Corp. plans to buy a firm involved in petroleum exploration in Oman for US $50 million, the latest in a flurry of overseas acquisitions by state controlled Chinese oil companies.

CNPC said in a statement it intends to buy a 50 percent stake in Mazoon Petrogas (BVI) Ltd from Mazoon Petrogas SAOC for US $25 million, to increase its oil reserves and boost earnings.

The other half of Mazoon Petrogas (BVI) has been bought by Rolly Co Ltd, an indirect wholly-owned subsidiary of CNPC, for the same amount.

As Chinese oil production dwindles, the government has urged state oil firms to look beyond national borders for crude supplies to relieve dependency on oil imports and volatile world oil prices. The parent CNPC has assets in Sudan, Azerbaijan, Kazakhstan and Myanmar, and is also the parent of China's top oil company PetroChina.