Energy companies are new targets of Chinese economic expansion. Chinese oil producers, which are state-controlled, are interested in investing in financially struggling energy companies and projects; at the same time they have been opening up oil production that might not occur otherwise. Last week the China NOOC Ltd. announced its plan of buying one of the largest Canadian oil producers, Nexen Inc., for $15.1 billion.
U.S. imposed sanctions on China’s state-run Zhuhai Zhenrong Corp, along with two other firms, for trading refined oil products to Iran. The move took place just days after US Treasury secretary, Tim Geithner, made a trip to Beijing to press for Chinese support on Iran sanctions. This has definitely created a chaos among other oil traders in the industry. And not to forget, this has surely been the talk of the town for quite a few energy magazines around the globe.
Chesapeake Energy, the second-largest producer of natural gas in North Texas’ Barnett Shale, has plans of selling off one of its pipeline units, Appalachia Midstream Services, L.L.C., to Chesapeake Midstream Partners LP. Chesapeake Midstream Partners LP is the entirely owned Chesapeake Midstream Development, L.P. subsidiary of that holds its Marcellus Shale midstream assets.