China National Petroleum Corp (CNPC) won a bid to purchase a nearly 60 percent share in Russian energy company Stimul. The move is China's first step into the Russian energy sector.
Privately owned Stimul claims most of its assets in southern Russia's Orenburg region. Russian media said that the firm had proven reserves of more than 300 million barrels and a probable reserve of around 100 million barrels.
If CNPC is approved by Russian regulators it will pay around US$200 million for the stake in Stimul, according to Russian media reports.
China is trying to diversify its oil sources away from its dependence on the Middle East.