HONG KONG (
China National Petroleum
have proposed paying at least $17 billion for all of
( REP) stake in its Argentine unit
Wall Street Journal
reports, citing two people close to the talks.
The potential deal could be the biggest overseas investment by China, the
notes. But the transaction faces significant hurdles and could be politically sensitive in Argentina, where YPF is the country's leader in both upstream operations and downstream operations.
The Argentine government holds no financial stake in YPF, but has the right to veto decisions such as a transfer of ownership, according to the
China National Petroleum, China's biggest state-owned oil firm, believes it would be able to resolve any political or consumer objections to a potential deal, one of the people close to the talks said, the newspaper reports. Cnooc is China's biggest offshore oil and gas producer.
Spain also could object to seeing some key assets of Repsol, the country's largest oil company, purchased by China, the
-- Reported by Joseph Woelfel in New York