MercoPress. South Atlantic News Agency

Renewed Chinese interest in Repsol Latinamerican assets

China National Petroleum Corp may bid for the Latin American assets of Repsol YPF if the Spanish group decides to offer them again for sale, the South China Morning Post reported on Monday citing sources.

The Hong Kong newspaper cited a source as saying the sale could be worth 10 billion US dollars depending on which assets go on the block. The source added that it is likely Repsol will sell refineries and upstream assets. Apparently last year CNPC expressed interest in the operation. Repsol has plans to sell off 25% of its Argentine YPF unit, although the recent credit crunch may make it more difficult to find buyers who can raise the cash. The perception in the market is that Repsol has set the price it originally paid for YPF, 15 billion US dollars, as the floor for the sale of a stake in the firm's Argentine business. CNPC and its subsidiary PetroChina jointly operate CNPC Exploration which is concentrated in overseas acquisitions. CNPC in 2007 twice tried to take over some of Repsol's assets. However from Madrid, Repsol YPF sources quoted by Thomson Financial News late Monday said the Spanish corporation was not in contact with Chinese investors over the possible sale of assets in Latin America. In related news China's Customs Administration reported that crude oil imports jumped 25% percent in March to a record as state-controlled refiners increased fuel production to end shortages in the fastest- growing major economy. Imports rose to 17.3 million metric tons, about 4.1 million barrels a day, compared with 13.86 million tons a year earlier. . Crude imports rose 15% to 45.53 million tons in the first three months, with the cost increasing 91% to 30 billion US dollars. The March oil import bill reached 11.7 billion as international crude prices climbed. China's oil imports are the third-highest in the world, trailing only the U.S., which bought about 10 million barrels a day last year, and Japan, which shipped in about 4.8 million barrels a day in February.