Ivanhoe Energy, CITIC form strategic alliance in China

Vancouver, BC-based Ivanhoe Energy Inc. and Beijing's China International Trust & Investment Corp. (CITIC) have formed a partnership alliance for operating in China and elsewhere around the world.

By OGJ editors

HOUSTON, Oct. 21 -- Vancouver, BC-based Ivanhoe Energy Inc. and Beijing's China International Trust & Investment Corp. (CITIC) have formed a partnership alliance for operating in China and elsewhere around the world. The partnership will be between CITIC's Hong Kong-based unit CITIC Energy and Ivanhoe's Sunwing Energy Ltd. of Calgary.

Based on the agreement, CITIC Energy will assist Sunwing to strengthen its position in Asia and to gain access to future financing opportunities, Ivanhoe said. Initially, the CITIC unit will help Sunwing develop gas resources in the Sichuan basin. Last month, Sunwing signed a 30-year production-sharing contract with PetroChina Co. Ltd. unit Pan-China Resources Ltd. of Beijing for the joint venture development of gas reserves on Zitong Block in the western portion of the Sichuan basin (OGJ Online, Sept. 23, 2002).

In turn, Sunwing said it will assist CITIC Energy to acquire interests in global oil and gas development projects and work to introduce gas-to-liquids and other technologies.

"China has been a net oil importer for nearly 10 years," said Wang Jun, CITIC chairman, "and China's continually growing economy will rely on more diverse energy sources."

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