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."
Misleading title. They exported condensate, not oil. From the article you linked:
“The Commerce Department will permit the two Texas-based companies to export the ultra-light condensate, which has grown in supply on the back of the boom in fracking-based exploration and production of natural gas.”
The huge trade deficit means its inevitable China will own the country. Simple math.
And when the oil export ban is lifted, it goes right to China.
It could be they are purchasing just the mineral rights and not the actual land. They are long term investors. They could invest in Mideast oil, but who the heck knows what’s going to happen over there? I’d say they are just trying to cover all the bases.
They invested in Iraq oil, and look where that got them.
You wish, they have enough money to buy any politician and put one or more in power as well.
Good post to clarify details that were totally muddled in the headline. Your deal with Chesapeake explains a lot.
<<< “this is a private transaction between a chinese company and apparently two American companies. “ >>> -——
Sure it is. But, it’s one big honking and vital “get”, for China.
<<< “ ni hao Rita :) “ >>> ———
Yes, well, what ever you said, it sounded sympathetic, so thank you onona. :D
yeah it’s Chinatown in New York City about eight miles from me lol. Seriously though I did hear about that. If it was a city that others couldn’t live in and American currency wasn’t used then I would be very concerned.
are you talking about Democrats or China?
“And when the oil export ban is lifted, it goes right to China.”
This oil will go the same place all the other oil here in the Permian Basin goes.
“It could be they are purchasing just the mineral rights and not the actual land.”
They’re not even doing that, all they’re getting is leases.
And the difference is....?
:^)
Anything that HELPS OTHER COUNTRIES WHILE HURTING THE U.S., 0dunga is all for it!
at least the Chinese leaders are honest about wanting communism lol
Well, if it is a matter of USA national security - we don’t have to worry about interference from the current administration...
Right. They just might pick up a swath of West Texas and take it back to China with them.
You got one for sale?
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