[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 26 October 2005, 12:17 GMT 13:17 UK
CNPC secures PetroKazakhstan bid
Chinese worker in oil refinery
China's rapid economic growth is fuelling its demand for oil supplies
A Canadian court has approved China National Petroleum Corp's (CNPC) $4.2bn (2.4bn) takeover of Alberta-based oil firm PetroKazakhstan.

PetroKazakhstan is headquartered in Canada, but its operations are all based in the central Asian republic of Kazakhstan.

The Canadian court turned down an attempt by Russian oil firm and rival suitor Lukoil to block the sale.

Lukoil said it should have first rights as it co-owns a PetroKazakhstan unit.

The Russian company has a 50% stake in Turgai Petroleum, which holds about 20% of PetroKazakhstan's reserves.

Lukoil had offered to match CNPC's $4.2bn offer, but the Canadian court turned down its appeal.

Pipeline

PetroKazakhstan and state-owned CNPC said they now intended to close the deal later on Wednesday.

However some analysts said Lukoil may yet make another appeal, this time to the Stockholm Arbitration Court.

The Kazakhstan government has backed the sale of PetroKazakhstan, and will itself now pay $1.4bn for a 33% stake as part of the deal with CNPC.

China has been working hard over the last year to increase its access to the global oil stocks it needs to consume, as its economy continues to grow at breakneck speed.

It has already started work on a pipeline from Kazakhstan.

But a bid by Chinese oil firm CNOOC for US rival Unocal failed back in the summer after strong opposition from American politicians.


SEE ALSO:
China's CNPC in $4.2bn Canada bid
22 Aug 05 |  Business
US grows wary of China flotations
12 Aug 05 |  Business
Chinese firm abandons Unocal bid
02 Aug 05 |  Business
China's global hunt for oil
09 Mar 05 |  Business
Kazakhs gain from China's oil needs
07 Mar 05 |  Asia-Pacific
Venezuela and China sign oil deal
24 Dec 04 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific