Chinese CITIC joins forces with Japanese Itochu to invest in shale projects

Merger and Acquisitions
Source: Stock Photo Secrets

As oil prices have started to recover, analysts predicted a surge of mergers and acquisitions. One of the first in such deals is the recently announced joint collaboration between Chinese oilfield operator CITIC Resources Holdings Ltd and Japan’s Itochu Corporation. The two companies are to jointly invest in oil and gas projects.

According to CITIC’s statement, the two firms will collaborate on identifying, acquiring and investing in oil and gas exploration and production assets and projects.

Itochu President Masahiro Okafuji said Itochu wanted to invest in natural resources with CITIC as the Chinese company has better access to those deals.

According to a Nikkei report on Tuesday, Itochu and CITIC Resources are considering acquiring stakes in low-risk projects with the companies jointly investing 100 billion yen ($946 million) or more per project.

Reuters reported that neither company would confirm the Nikkei figure.

“We want to look into oil and gas deals together as there are promising assets on sale and natural resource prices have apparently stopped falling and have been stabilised,” an Itochu spokesman said.

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