Overseas investments by China's national oil companies in 2010 will exceed last year's figure of US$18.2 billion, the International Energy Agency (IEA) said in a research report published Thursday.

The report said that in the first four months of 2010, Chinese oil companies' overseas investments were already more than half the total for 2009. China's three major oil giants, CNPC, Sinopec and CNOOC, have so far spent US$29 billion worldwide purchasing oil and natural gas assets.

The oil companies will also step up overseas M&A this year, said Andy Brogan, Ernst & Young's global oil and gas chief transaction advisory leader. The moves have the support of the Chinese government because they will boost the country's oil reserves, he said.

"China is currently seen generating 40 percent of 2010 incremental demand, now 1.7 million barrels per day, and nearly 45 percent of 2010-2015 growth," said the IEA in the report.

CNPC and Sinopec have also conducted 11 loan-for-oil deals with eight countries, with a total transaction volume of US$77 billion, the IEA said.

China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.

Go to Forum >>0 Comments