China is pouring another $7bn (£4.4bn) into Brazil’s oil industry, reigniting fears of a global “land grab” of natural resources.
State-owned Sinopec clinched the deal with Spain’s Repsol yesterday to buy 40 per cent of its Brazilian business, giving China’s largest oil company access to Repsol Brasil’s estimated reserves of 1.2 billion barrels of oil and gas. The whopping price tag for Repsol Brasil ”“ which values the company at nearly twice previous estimates ”“ is a sign of China’s willingness to pay whatever it takes to lock in its future energy supplies and avoid social unrest. It will give the company enough cash to develop all its current oil projects, including two fields in the Santos Basin.
They are clever and foresighted.
Is this any different than what American oil companies did years ago? I don’t think so.
There is nothing wrong with developing resources, it will help make China and Brazil financially, politically and militarily stronger. The question is why aren’t we investing in our own resources. I human history, China has spent much of the time as a world power. My guess is they will be there again.
Back in the 1980’s everyone was worried about Japan buying up America and look how that turned out. LOL All they got was the golf courses on Hawaii before their bubble burst. China is a bubble…