Chinese investors showing more interest towards Sothern Cone

Chinese Energy Investment in South AmericaLarge business organizations in China are showing immense interest to furnish energy investments for the energy sector of Latin America. The experts asserted that, the Chinese energy investments would mainly target Sothern Cone. The oil companies of China have rendered more than 15 billion US dollars for the upstream energy projects in Latin America. Many believe the energy investments made by the Chinese companies, would elate the economic and political policies of Latin America. The senior member of the Inter-American Dialogue Paul Isbell asserted that, the energy demand of China would increase magnificently in the forthcoming years. Within a few decades, China would emerge as the largest importer of oil in the world. The main reason for the Chinese oil companies to purchase the Southern Cone is, the place contains rich energy and the Chinese partnerships with Iran and Russia may certainly become volatile in accessing the royalties, legal security and taxes.

Argentina will also try to attract many international companies to produce significant energy investments and also would establish more charismatic policies to outsmart other previous polices given by others. Southern Cone is the vital sub region of Latin America and it is well known for deep energy investments partnership with China, in energy sector as well as other sectors. According to Professor Jiang Shixue of the Chinese Academy of Social Sciences and the vice president of Chinese Association of Latin American Studies the predominant problem of the energy sector of Latin America is, they lack capital and China requires more energy, which will be acquired from extraneous resources. But the Chinese has sufficient financial support for their ‘going out strategy’ and the presence of China in the energy sector of Latin America, is great welcomed by the Latin Americans. The presence of China in the Latin American energy market would make energy market of Latin American more competitive and this would be an added advantage to attract the international energy companies.

The Chinese energy investors do not give any special preference for any country or energy companies. Investors are interested to produce energy investments in places, where ample opportunities are found, that may be in any part of the world. Moreover China finds more difficulty in establishing an energy company, completely owned by them. So they are ready to establish partnerships with various countries and companies and would be a traditional merger. According to the energy economist, the Chinese energy investments have helped Latin America significantly and price of the commodities have been raised largely. Latin America also started to show more interest towards China for the above reasons.

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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