China's Oil Demand Meets North Sea Supply

August 26, 2013

The market for office space in Aberdeen reflects the liveliness of the city's economy more widely.

But one small office opening this week may prove to be more significant than most. The company making the announcement is a newly formed one, called Addax Petroleum UK Limited.

Its significance is its owner, Sinopec, the fourth largest company in the world, and the state-owned corporation that's scouring the world to secure energy supplies for China.

China already has around 8% of the North Sea's producing capacity. Sinopec recently formed a joint venture with Talisman, from Canada, and another state-owned company, CNOOC, has paid nearly £10bn to buy the Canadian firm Nexen, with its major stake in the huge Buzzard field, off Aberdeen.

The Chinese strategists are now putting Addax into Europe's energy capital to look for more opportunities, which could include joint ventures, acquisitions and equity stakes.

Copyright, BBC, 2013.