If someone had said only five years ago that a major European-based energy company would be partnering with an arm of the Chinese government to try to buy an energy asset anywhere in the world, a reasonable person would have said, "That is simply impossible." But not only is it possible, it is happening right now in yet another indication of how the world is becoming much smaller indeed when it comes to energy assets.
Earlier this week Royal Dutch Shell and PetroChina announced plans to pursue Arrow Energy in Australia. As reported in the Financial Times ("Shell and PetroChina Offer to Buy Australia's Arrow," March 8, 2010), "The Australian company [Arrow] is at the vanguard of a handful of projects in the state of Queensland that are investing billions of dollars in a race to convert reserves of coal-bed methane into liquefied natural gas."It is not clear whether the deal will close, but for now it is enough to be aware of the fact that Chinese government-related companies and large "western" firms see a benefit in working together to pursue energy assets. Making money and securing natural resources appear to be as natural for western firms as Chinese ones. And that will likely mean some very interesting opportunities for those who are prepared to participate in the "new look" related to global energy.
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