China National Petroleum Corp (CNPC) and CNOOC have proposed purchasing Repsol YPF SA’s stake in Argentine oil unit YPF for US$17 billion, the Wall Street Journal reported, citing sources close to the negotiations. YPF plays a major role in the production, refining and marketing of oil in Argentina, so any formal deal must meet Argentinian government approval. None of the parties involved in the negotiations commented on the reported proposal, but a Repsol press official said the company had received "expressions of interest" in YPF. A deal would be the latest in a string of overseas energy acquisitions by Chinese firms, including Sinopec’s acquisition of Switzerland-based Addax Petroleum in June, CNPC’s acquisition of Kazakhstan’s MangistauMunaiGas and KazMunaiGas in July, and Chinese oil companies’ oil-for-loans agreements with Russia and Brazil.
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