China Buys 2nd Major Canadian Oil Company

One of China’s national energy companies bought a major Canadian oil and natural gas company for $2.1 billion in China’s second acquisition this year of a major Canadian energy company.

Sinopec has acquired access to Daylight Energy’s 69 oil and natural gas assets in the western provinces of British Columbia and Alberta.

In November China’s state-owned CNOOC had bought Canada’s OPTI for $2.1 billion in a deal that’s about the same size of Sinopec’s current purchase.

China’s state-owned energy firms have been buying oil and gas assets in Canada, Africa, Central Asia and elsewhere to help meet its surging energy demand as its economy continues its robust growth despite sluggish growth in most of the developed world.

Canada has expressed few qualms about selling its energy assets to Chinese firms. China tried to buy Unocal, with its petroleum assets in Southeast Asia, for $18.5 billion in 2005 but was ultimately forced to withdraw its bid due to intense political opposition to the sale.