China Petroleum & Chemical
It’s no secret that China has an oil addiction. It’s also no secret that China is willing to go to great lengths to secure the supplies its needs to fuel its torrid growth. The various state-controlled energy giants within the nation have plowed billions into deals spanning the globe — from Canada to Egypt — in order to gain access to reserves and production.
China Petroleum & Chemical (SNP) — or Sinopec — has been one of the biggest spenders, and those huge dollar amounts are flowing into Mexico as well.
When Mexico’s Congress first began tinkering with energy policies back in 2009, Sinopec was granted limited access to the nation’s offshore waters in order to prospect for oil. More recently, the Chinese firm signed agreements to provide more energy services to PEMEX and its subsidiaries.
However, the biggest deal could be the agreement to strengthen trade relations between the two firms and send a larger volume of crude exports — via Sinopec — into the Asian Dragon. Due to this deal, it’s almost guaranteed that SNP will be getting a huge slice of Mexico’s energy pie and could get first crack at joint ventures or land leases when drilling finally begins.