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China International Trust & Investment Corporation (CITIC), China's finance superpower, and Ivanhoe Energy, a Canada-based public company, yesterday formed a strategic alliance to jointly develop oil and gas resources in China and worldwide.
The alliance marks a milestone step for CITIC, whose business ranges from finance to real estate. The company is leaping into the energy industry following a failed attempt to explore for oil in China's waters years ago.
"The investment in the energy industry is important for CITIC," said Wang Jun, chairman of the company.
As the first step in the joint venture, CITIC will help Ivanhoe's Sunwing Energy develop gas resources in the Sichuan Basin, which is believed to have natural gas reserves equal to those in Canada and the United States combined.
Earlier this month, Sunwing agreed with PetroChina, the nation's largest oil company, to prospect in a 3,560-square-kilometre area in Zitong in Southwest's China Sichuan Province.
No detailed co-operation plan was revealed at yesterday's press conference, but Robert M. Friedland, deputy chairman of Ivanhoe Energy, said CITIC Energy, the company's subsidiary, is likely to take up to shares in Sunwing which plans to list on the Canadian and Hong Kong stock markets as early as next year.
Friedland also said Ivanhoe and CITIC are likely to establish joint ventures with PetroChina, and probably other international companies, in developing domestic and overseas oil and gas reserves.
(China Daily October 19, 2002)
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