Xinjiang CITIC to Buy Russian Oil Field     

Xinjiang CITIC Suntime Resources Co., Ltd. (Xinjiang CITIC) is in talks with a Russian oil firm to acquire an oil block there.
    Xinjiang CITIC, founded in Urumqi, Xinjiang Uygur Autonomous Region, in March 2006, was a state-owned company co-funded by CITIC Guoan Group Co., Ltd. under China International Trust and Investment Corporation (CITIC Group), and Suntime International Tecnho-Economic Cooperation (Group) Co., Ltd.
    Xinjiang CITIC engages in the exploration and development of energy and mining resources such as petroleum, natural gas, coal, metals and non-metal minerals.
    If successful, this will become Xinjiang CITIC's second overseas acquisition in the company's history of just over two years. In July 2007, Xinjiang CITIC acquired the Mortuk oil block in Aktobe, a northwestern region of Kazakhstan, for US$250 million.
    The Mortuk field holds proven reserves of about 500 million barrels of oil, with a potential of an additional 85 million barrels, according to the company.
    CITIC Group has been using its Hong Kong-listed arm, CITIC Resources Holdings Ltd. (CITIC Resources, HK: 1205), as a platform for overseas resources acquisitions. CITIC Resources bought a 51% participation interest in the Seram Island Non-Bula Blocks in Indonesia for approximately US$97.4 million in November 2006. (CCR2006 No. 35)
    At the end of 2006, CITIC Group acquired Canada-based Nations Energy Co.'s oil business in Kazakhstan for US$1.91 billion, and then sold part of them to CITIC Resources for US$1 billion in middle 2007. (CCR2006 No. 32, 2007 No. 15)