China expands presence in UK energy sector

China Petroleum & Chemical (SNP.NYSE, 600028.SH, 0386.HKG), also known as Sinopec, announced that it would purchase 49% of Talisman Energy’s (TLM.NYSE, TLM.TSE) UK business for US$1.5 billion, just hours after Cnooc Ltd. (CEO.NYSE, 0883.HKG) announced it would take over Nexen (NXY.NYSE, NXY.TSE), the UK’s biggest oil producer, for US$15.1 billion, The Wall Street Journal reported. The two acquisitions will give the Chinese companies an approximately 11% stake in the UK energy sector. Nexen operates the UK’s largest oil field, Buzzard, which accounts for 21% of total UK oil production. The agreements, the latest in a string of takeovers to meet China’s appetite for foreign energy assets, have yet to provoke any political opposition. “The UK is open for business and actively welcomes inward investment to our energy sector,” the UK Department of Energy and Climate Change said in a statement.