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."
Ping.
Texas Ping.
No offense but govt should forbid this purchase for national security reasons.
Hecky Durn.
Yep.
Let them have it. If they do anything we don’t like, nationalize it and take it back.
Has anyone told them there is oil in California? Would prefer they not be permitted anywhere in the U.S. and most certainly not in Texas. Who do you think in the current government will say no?
Seriously, I think I’m going to be sick.
I can’t decide on this one. The more vested interest in the US, the less the chance for war with China and the more bargaining power we have regarding those fake island china has been making.
But national security is a concern.
amazing china hasn’t realized yet that if they let go of the communist nonsense they could see 10 percent growth, at least in the beginning.
Inexcusable. Let me see the contract.
Hell’s bells, let Donald Trump see this damn contract.
Ongoing reforms, my aunt fanny. The Chinese government is as rapacious as it always was with any money going to the big shots, NEVER to anyone else.
This is how Obamao is paying off our debt.
OUTstanding idea!
hmm. dont know what to make of the whole thing. not smart enough lol
Maybe I am older but I remember the same kind of reaction when the Japanese were investing in the USA...
They cannot take it back home, the see the future here and NOT an Islamic one...
They have deep pockets and if they can keep our oil production up as they will to recover their funding then they will have snubbed the plan to put Saudis in a controlling position...
Investment money is investment money, they are not gonna import a buncha their foke to come over..
Sorry, I talk oil I go back to Texas...
If they were just investing in a company that sounds OK, but they are purchasing land. They have been buying real estate like crazy all over this country for several years too. They can take advantage of our private property rights here but do American investors have those rights in China?
Chinese own us anyway...but you don’t mess with Texas
Great post. I agree.
It’s gonna be american workers and it seems like if you wanted to imminently go to war with a country, you wouldn’t invest a fortune there and have it confiscated.
You sound like Trump. Can’t wait to hear him on this deal and repeat what you just said. Conservatives are already alarmed at our own government sucking up land use for parks. This deal is wide open for concern.
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