Chinese companies are willing to invest in oil and gas overseas Chinese oil group PetroChina has agreed to purchase a stake in Canadian firm Encana's shale gas field for $2.2bn. In the second biggest Chinese-Canadian energy deal, following CNOOC's takeover of oil firm Nexen earlier this month, PetroChina will buy a 49.9 percent stake in the natural gas project in Alberta.
PetroChina is China's leading and has concluded its second deal of the week, following acquisition of BHP Billiton's stake in an Australian liquefied natural gas project.
The growing domestic energy demand has led Chinese companies to invest in oil and gas resources overseas. CNOOC's $18bn takeover of oil firm Nexen was approved by the Canadian government, despite some external opposition and questions about Chinese influence on the Canadian oil and gas industry.
As a result, Canada has unveiled new rules which prevent state-owned companies from complete control of Canadian oil businesses, unless they satisfy a specific criteria.
The rules are flexible when it comes to minority stakes, but Canadian authorities may still review PetroChina's agreement under the premise that the company has control with 49.9 percent.