Posted on 10/25/2015 8:30:13 PM PDT by UMCRevMom@aol.com
The Shanghai-listed Yantai Xinchao Industry Co. filed a security filing over the weekend announcing it would purchase Texas oil properties for 8.3 billion yuan. AFP/AFP/Getty Images
A Chinese investment holding company intends to put down stakes in the United States after signing a letter of intent to purchase oil properties in western Texas for $1.3 billion through a limited liability partnership.
The Shanghai-listed Yantai Xinchao Industry Co., said in a securities filing over the weekend, it was a purchasing oil lands in the Texas counties of Howard and Borden as part of the proposed acquisition of Ningbo Dingliang Huitong Equity Investment Center, according to the Associated Press.
The news service also reports Yantai Xinchao said in its letter of intent, the transaction, worth 8.3 billion yuan, has been "approved by the Committee on Foreign Investment in the United States" which is part of the Treasury Department.
The oil properties are being purchased from Tall City Exploration LLC and Plymouth Petroleum LLC, according to the Wall Street Journal.
Neither Tall City Exploration or ArcLight Capital Partners LLC, the parent company of Plymouth Petroleum, returned requests for comment by the time of this posting. We will update if things change.
The Wall Street Journal also reports Chinese energy companies have been longing to do business in the U.S. because of "stable laws governing oil exploration and production." The publication adds:
"But U.S. restrictions on Chinese investment in potentially sensitive areas means investment in the U.S. energy patch by Chinese companies is, to date, limited. Yantai Xinchao said it had already received permission from the U.S. government for the deal.
...
"Chinese companies are looking abroad for oil deals partly because of tight restrictions at home, making investment in oil-and-gas exploration and production next to impossible in many cases. State-owned oil behemoths dominate China's energy landscape, leaving little space for independent companies to invest. China's government says it aims to bring more private capital into the oil sector as part of ongoing reforms."
I’m in the oil and gas business and live in Howard County, we’ve got just under 50 sections in Howard, Borden and Glasscock county. We own and operate wells in all these counties plus hold minerals on an additional 180 sections in said counties. This is just a buy out of existing production, neither the minerals or the surface is being purchased. No different that what we did north of town on 8 sections that we own both the surface and minerals on. We drilled 14 wells total and operated them for 4 years then sold them to Chesapeake. We still own the land, minerals and receive royalties from these well’s and 22 others that they have drilled since. The big money to be made is in the first 1 1/2 years then the production falls off considerably. out best well up there made averaged over 300 barrels of oil per day and around 250 mcf gas per day for the first 6 months. it had dropped to 35 oil and 62 gas within 2 1/2 years.
Let me add that they will be selling oil and gas to the same companies I’ve been selling to for the last 20 year’s. No big deal other than a very misleading headline.
The Chinese government is engaged in an ongoing process to erode the value of its own currency in a desperate attempt to stimulate its economy. Anyone in China with an IQ over 70 and a lot of Chinese cash is going to do whatever is necessary to buy foreign assets like this, because their own money isn't worth a damn.
Just as an FYI ... Raw crude oil can’t be exported, but there’s nothing illegal about exporting refined petroleum products.
The systems here and in China are (dramatically) different.
We do not have the same rights there, that Chinese investors do here.
That is now, and will be more and more, the issue. This is just a symptom.
Donald Trump is the only person looking out for our bigger national interests at the moment.
The only person.
You get on every one of these threads and complain that Americans are sending jobs overseas.
Now you have a foreign company coming back here to invest in America ... paying $1.3 billion to Americans in the process ... and you complain about that, too.
I'm not opposed to Trump on principle, but my biggest problem with him is that his support seems to be strongest among malcontents who wouldn't be happy no matter WHAT happens.
I’ve lived in China.
I give a sh!t we are giving them the future.
The Rockefeller Center purchase by the Japanese turned into an enormous financial fanny whipping for them. Totally out maneuvered by American interests
Cheasapeake already sold out holdings in the Eagleford to the Chicom WITH Obama approval. The interest is in the southern part of the Eagleford.
My understanding is that the nat gas is being liquified and shipped to China along with the oil
Wrong area
Seems I remember Rush talking a while back about how China had purchased land here in the US and is building a Chinese community here with our government’s blessings.
The FBI has apparently arrested quite a few Chinese-Americans for all sorts of alleged crimes, most being dropped eventually. I get the feeling our government doesn’t trust the Chinese. I don’t understand why. Bill Clinton loved them.
Federal government’s witch hunt aimed at Chinese Americans
Sunday, September 13, 2015 21:14
“....if they let go of the communist nonsense they could see 10 percent growth...”
They won’t, and can’t. They love the control and power factor it provides them with.
They’ll open up a bit, just to keep the peasantry happy, but not enough to afford any real chance of the peasantry removing themselves from under the boot.
I’m split on it happening myself. Oil is fungible, when it comes out of the ground from here it employees a lot of people and keeps the economy running, it also cuts into the middle east production which is a good thing. Yes the end profit goes there but most of it does stay here, unlike say what most of Walmart sells. Smart money says a lot of that profit will be reinvested in our free market now as well, so that also is a plus.
The land itself is not worth much to be honest, certainly at the price they paid. Only the oil makes it have any real value. We can control that easy enough if we had to, they still have to get it to the refinery and distributed from there. Hell, a wink and a nod to OSHA alone can cut profits and production enough to ruin their day.
It’s real estate, they can’t take it with them when they go or we throw them out. Eventually it all gets our flag planted on it again one way or another.
How does this pay off the debt? it doesn’t.
this is a private transaction between a chinese company ant apparently two American companies.
They bought and apparently will pay for oil in the ground and take the risk for it being there and the worth
yep and....$1.3 billion on the ledger of the sellers can likely be invested in other oil properties thus producing a double profit
A number of dictators have been cordial when they needed to be.
The U.S. has long been a desired destination for Chinese energy companies, owing to stable laws governing oil exploration and production. But U.S. restrictions on Chinese investment in potentially sensitive areas means investment in U.S. energy by Chinese companies is, to date, limited. Yantai Xinchao said it had already received permission from the U.S. government for the deal.
The latest deal reflects how Chinese companies are looking to new industries beyond China’s borders to profit, as domestic demand for everything from cars to real estate slows alongside a weakening economy.
In another case last year, Chinese gold retailer Goldleaf Jewelry Co. acquired Texas-based energy firm ERG Resources LLC for $665 million.
http://www.wsj.com/articles/chinese-property-developer-snaps-up-texas-oil-fields-1445773022
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