CITIC and Ivanhoe Energy form strategic alliance
18 Oct 2002
China International Trust & Investment Corporation (CITIC) and Ivanhoe Energy Inc. announced today that the two companies have formed a strategic alliance to co-operate with each other in the oil and gas industry within China and worldwide.
The new alliance will see CITIC Energy, a CITIC subsidiary based in Hong Kong, combine resources with Sunwing Energy, Ivanhoe's China flagship subsidiary.
According to a statement, CITIC is a Chinese state-owned enterprise that reports directly to the State Council. It holds major interests in many industries including banking, information technology, investment services, real estate, engineering services and infrastructure investment.
As of the end of 2001, its total assets exceeded 400 billion RMB (US$48 billion). CITIC reported an after-tax net profit of 2.4 billion RMB (approximately US$290 million) in 2001.
CITIC Energy will assist Sunwing to increase its profile in Asian capital markets and gain access to future financing opportunities and support its objective of securing a listing for its shares on the Stock Exchange of Hong Kong. As the first step, CITIC Energy will help Sunwing develop gas resources in the Sichuan Basin.
Sunwing will help CITIC Energy acquire interests in international oil and gas development projects and work to introduce gas-to-liquids (GTL) and other advanced energy-sector technologies to China's domestic oil and gas industry.
