Reuters reported on May 27, 2014 that China National Petroleum
Corporation ("CNPC") - the parent company of Chinese energy giant,
PetroChina Co. Ltd.
) - intends to invest roughly $2.0 billion in Peru over a period of
10 years. In the recent past, CNPC purchased a natural gas
block in Peru form
Petroleo Brasileiro SA or Petrobras
) - the largest integrated oil company in Brazil.
CNPC has already received permission from the regulatory bodies of
Peru for investing $1.0 billion in upstream operations in the
natural gas field bought from Petrobras. The mother company of
PetroChina− the largest integrated oil firm in China− is also
looking for opportunities to invest $4.0 billion in southern Peru
for a natural gas pipeline project. The pipeline is expected to
carry gas to the thermoelectric plants located at the Pacific coast
of Peru from Camisea gas fields.
Latin America has caught China's attention for its natural gas
resources that could fuel the Asian country's future economic
growth. This led the Chinese state-owned firm CNPC to expand its
presence over there. CNPC has already started operations at
Colombia, Ecuador, Cuba, Brazil, Costa Rica and Venezuela.
CNPC holds a majority stake of 86.35% in PetroChina, which was
established in Nov 1999. PetroChina currently retains a Zacks Rank
#4 (Sell) − implying that it is expected to underperform the
broader U.S. equity market over the next one to three months - for
its profits might be affected as the Chinese government caps the
prices of refined-products (particularly gasoline and diesel) to
Meanwhile, one can look at better-ranked players in the energy
Ultra Petroleum Corp.
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
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