Chinese Oil And Gas Enterprises Overseas M&A Cases Research

Chinese enterprises overseas M&A transactions are increasing inrecent years, yet most of them failed. These transactions mainlyconcentrated in the oil and gas industry, and the global competitivelandscape is changing in this market now. On one hand, the Middle Eastcountries’ conventional energy sources are losing superiority, while theAmerica region’s Unconventional energy provided enough self-supply,even exported to other countries. On the other hand, the Asia Pacific regionare becoming consumption center, Chinese oil and gas enterprises will facethe pressure of the gap between supply and demand, they are eagerly to gooverseas on strategic basis. Thus, the essay selects two typical cases tostudy, CNOOC’s failure on acquisition of US Unocal vs. Sinopec’s successon acquisition of Canada Daylight Energy. CNOOC’s failure was mainlydue to political intervention on adding legal regulation; While Sinopec’ssuccess was related to right timing and suited shareholder. Finally, in orderto provide some practical suggestions to the Chinese oil and gasenterprises, the essay extends research and contrasts Sino-US shale gasenergy cooperation and Sino-Canadian oil sands energy cooperation, andcompares two countries’ investment environment, legal regulation and tax.