Sinopec Inks $6 Billion Offshore Indonesia Deal With Chevron

Dr. Stephen Leeb submits:Not to beat a dead horse, but we’re still impressed with China’s control over its fast growing economy. While the Chinese GDP down-throttled to single digits in the second quarter of the year, recent data points to a reacceleration. Among recently released figures, Chinese imports in August were exceptionally impressive.

The document also briefs Harper on Sinopec’s proposed $1.5-billion acquisition 49% of the U.K. assets of Calgary- based Talisman Energy Inc. Sinopec doesn’t require Canada’s approval to complete the deal Cnooc Ltd.’s US$15.1-billion takeover of Nexen Inc. would give the Chinese company the largest stake of an oil field in the North Sea that “has increasingly influenced” global oil prices, according to a memo sent to Prime Minister Stephen Harper by Canada’s top government worker.

Sinopec has struck a deal with Chevron to join a $6 billion-plus deepwater natural gas project off Indonesia, in the latest push by Chinese companies to secure overseas energy assets.

Sinopec has struck a deal with Chevron to join a $6 billion-plus deepwater natural gas project off Indonesia, in the latest push by Chinese companies to secure overseas energy assets.

Exxon Mobil Corp.’s plans to develop a US$14-billion underwater oil field off Newfoundland’s coast allows the world’s biggest energy company to hedge against discounted crude from Canada’s oil sands. “The better pricing is definitely an issue,” Brian Youngberg, an analyst at Edward Jones & Co. said by phone from St. Louis on Jan. 4. “While things could change in the time it takes to finish the project, it’s a great way for Exxon to hedge their pricing.”

Dr. Stephen Leeb submits:With tax cuts and unemployment benefits extended, things are looking brighter for the US economy in the near-term. The renewed activity is surely being felt in energy markets, with the largest oil consumer (the US) getting its legs back under it. Crude oil prices are hovering just under $90 per barrel, and the focus is again turning back to the tight gap between production and consumption.

Cnooc Ltd. reported 2012 profit that missed analyst estimates as China’s biggest offshore oil producer spent more to explore and revive stalled output growth. Net income fell to 63.7 billion yuan ($10.3 billion) in the 12 months ended Dec. 31 from 70.3 billion yuan a year earlier, the company said in a statement to the Hong Kong stock exchange today. That compared with the 65.3 billion yuan mean of 29 analyst estimates compiled by Bloomberg. Sales climbed 2.8 percent to 247.6 billion yuan.

Trefis submits: Founded in 1989, Chesapeake Energy (CHK) has grown to become the second largest producer of natural gas and one of the most active drillers of new wells in the U.S.