Chinese petroleum producers expanding inorganically

Sinopec today announced a tender offer for Addax Petroleum of Switzerland. Addax management has okayed and recommended the deal to shareholders. Addax has some valuable assets in West Africa and Iraq, both areas where GET has been extending our business, and so of particular interest to us.

Seems like the dragon's expansion is likely to continue, as predicted in a previous post by Ian Rushby. Will there be a nationalist pushback like the Rio Tinto or CNOOC- Unocal deal, or would the invisible hand of the market triumph?

GET at Oil & Gas Asia 2009 Exhibition

I just got back from attending the 12th Asian Oil, Gas & Petrochemical Engineering Exhibition in Kuala Lumpur last week. I was present there exhibiting at a booth under the auspices of our partner Max Energy. This post outlines some of my impressions and takeaways from speaking to exhibitors and participants at the show.

• The exhibition was pretty extensive, covering 17000 square feet at the Kuala Lumpur Convention Center. Exhibitors covered two large halls that one often got lost in.
• There were almost 900 participating companies and close to 20000 visitors. It’s billed as Asia’s largest O&G show and it was indeed the case. Looking through the business cards I collected, I seem to have met with people from 17 different countries in the short space of a day and a half. Talk about a globalized industry!
• There seemed to be a much higher degree of optimism in the industry at the event. I was at the OTC show in Houston in May, where I noticed a more subdued mood. I bumped into an exhibitor who had showed at OTC as well, and in comparing notes, he mentioned how he felt that the near term business opportunities seemed more real at this show.
• The economic “green shoots” that analysts have recently been talking about seem to have already sprouted in SE Asia, at least in the O&G space. Well, we’ve also had a 20% runup in oil prices in the last month, which may have contributed to the general sense of new horizons.
• There seemed to be quite a few college students who were checking out the show. I got talking to a couple of these students, and there seemed to be a genuine sense of interest in long term careers in the O&G space.
• Finally, a word about the cuisine. I loved the noodle soups, particularly the kari mee, available at the event concession stands. Messy (still trying to get the curry stains off my favorite tie) but absolutely delish.