China National Petroleum Corporation (CNPC), parenting PetroChina, plans to revive a US$17 billion bid for an Argentina oil satellite, currently owned by Repsol YPF, a Spanish oil company, South China Morning Post (SCMP) reports, citing an authoritative source.

CNPC expects to hold 75 percent of the asset, while China National Offshore Oil Corporation (CNOOC) plans to get the remaining 25 percent. The price offered by the two Chinese national oil giants totals to US$22.6 billion

If the deal succeeds, it would mark the latest in a recent string of foreign takeovers by China's major oil companies and China will obtain an abundant oil resource in South America. But SCMP also implies that the CNPC offer may face stiff political obstruction from the Latin America.

This unidentified source claims CNPC is also making appraisals of other potential deals in the region, including the joint bid with French Total for a heavy oil belt at Venezuelan Orinoco.

On the other hand, Repsol Chairman Antonio Brufau disclaimed on June 23 that his company was not in the negotiation with Chinese oil firms concerning the stake transfer.

Repsol YPF is an Argentina-based Spanish oil company. Its business scope includes exploiting crude, liquid and natural gas, while its downstream business includes oil refining, transportation, petrochemical, marketing and etc.

For more information, please consult the original coverage in Chinese at:

http://www.eeo.com.cn/finance/banking/2009/07/01/142321.shtml

(China.org.cn by Maverick Chen, July 2, 2009)