a peach is a peach a plum is a plum a kiss isnt a kiss without some tongue Your position:Home->china news-> PetroChina Sees Opening for Deals PetroChina Co., China's biggest oil company, expects China's slumping prices will help it rein in costs and sees the economic downturn as an opportunity to hunt for overseas acquisitions and ventures. Depressed oil prices and the global credit crises have left smaller oil companies scrambling for cash, creating an opening for Chinese companies, which still have access to financing from the country's robust banking sector. Meanwhile, China is already starting to see a rebound in demand amid signs of economic recovery, PetroChina President Zhou Jiping said on the sidelines of the company's annual general meeting. 'Overseas M&A is always a key point for PetroChina's strategic development, and under the current financial crisis with low oil prices, it's a very good opportunity,' Mr. Zhou said. He also said the company is actively looking at overseas projects, 'including enhancing our cooperation with the state oil companies of some key resources countries, such as Kazakhstan, Venezuela, and even Qatar.' PetroChina executives said they are in talks with international oil majors including Anglo-Dutch Royal Dutch Shell PLC, Britain's BP PLC and U.S. major Chevron Corp., along with state-owned oil giants in Qatar and Venezuela. Shell, BP and Chevron declined comment on specific deals. PetroChina's state-owned parent company, China National Petroleum Corp., recently agreed to buy Kazakh oil producer MangistauMunaiGas in partnership with Kazakhstan's state-owned KazMunaiGas for $3.3 billion, part of an ongoing push into Central Asia that is opening new routes for oil and natural gas to China. Chairman Jiang Jiemin said PetroChina is also pushing ahead in Venezuela. Agreements there could bring in about 800,000 barrels a day once two joint-venture refineries to handle Venezuela's extra-thick crude oil are finished. Company executives didn't provide further detail on the plans. Even though PetroChina has managed to outperform some of its international peers, it hasn't escaped the economic downturn. The company saw profit fall 22% last year, its first such drop since 2001. Oil production fell 5.7% in the first quarter compared with a year earlier, as the company cut production to match weaker demand and higher inventories. And PetroChina is facing pressure to rein in costs. Mr. Zhou said PetroChina would aim to reduce 2009 capital expenditure by 10% and reduce operating costs by 5%, without revealing figures. In April, the company said capex would be 232.2 billion yuan, or about $34 billion. Shai Oster Contact Us-------------------------------------ddpcn.com * Required information Full Name: * Your Email: * Message:* Preview:Consumption Conundrum o      Next:Metal Imports Raise Rec Cheap Pork Could Become Costly in China China To Replace Chief Of CCTV China Ahead Of Curve On Derivative Oversight China Likely To Surpass US In Online Game Mkt Metal Imports Raise Records and Eyebrows of China Consumption Conundrum of China IEA Casts Doubt on China Interesting facts about China Facts about China Hainan May Build Oil Reserve Base