China’s thirst for oil is evidenced by the growing number of deals Chinese companies are making with companies in its oil-rich neighbourhood.On Tuesday another private Chinese oil company made such an acquisition in Kazakhstan. China’s MIE Holdings acquired Emir Oil, the wholly-owned operating subsidiary of BMB Munai (BMB), a Kazakh oil and gas explorer for US$170m.
Kazakhstan has the largest oil reserves in the Caspian Sea region and is the second largest oil producer within Central Asia. The country is expected to continue to lead the region in oil production from existing fields and newly discovered fields.
MIE’s acquisition of Emir Oil gives it a foothold in one of the world’s richest oil and gas regions – the Caspian Sea. The company used funds it raised in an HK$1.13bn (US$146m) initial public offering in Hong Kong in December last year to help finance the acquisition.