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To: CommanderCricket who wrote (124515)	9/29/2009 2:03:09 PM
From: elmatador	1 Recommendation Respond to of 206124

Sonangol Wants To Block Marathon's Stake Sale To China -Source LONDON (Dow Jones)--Angola's state-owned Sonangol would like to block the sale to Chinese companies of a Marathon Oil Corp. (MRO) oil-field stake, a person familiar with the matter said Friday, as the Asian powerhouse faces reversals in its quest to tap Africa's resources. "They made up their mind. The seller won't mind," the person said about Sonangol's intention to preempt the stake and block its sale to Chinese companies. On July 17, Marathon Oil agreed to sell a 20% stake in Block 32 to China National Offshore Oil Corp. and Sinopec for $1.3 billion. At the time, China was seen as ramping up its takeover of African fossil and mineral resources to satiate its resilient economy. In June, Sinopec already had agreed to acquire oil explorer Addax Petroleum Corp. (ADXTF)for $7.2 billion, which has a significant presence in Nigeria. But within weeks, the strategy has started to face its greatest test as some in the African countries complain they aren't gaining from the relationship. The person said state-owned Sonangol decided to exercise its right of first refusal two weeks ago and the seller would still expect to be paid $1.3 billion. "They have the necessary cash, much of it from Chinese banks" which have lent to Sonangol in exchange for oil, the person said. The person added that Sonangol was free to use the money to exercise its preemption rights. But no formal deal has been announced and the considerations could still fall through. However, U.S. consultancy Eurasia Group said Friday there was still "the possibility that Chinese pressure and negotiations could still force the Angolan government to step back." A spokesman for Marathon said it had already announced that "the concessionaire and the other Block 32 partners have rights of first refusal. "We are working through this process," he said, adding that the company doesn't expect any material impact on the timing of the sale, which is due year-end 2009. The possible refusal comes hard on the heels of Libya's refusal to approve the $462 million acquisition of Canada's Verenex Energy Inc. (VRNXF) by China National Petroleum Corp. "The Chinese have money burning a hole in their pockets and there have been suggestions that various senior Chinese officials have been sacked for not making more rapid progress in acquiring international oil and gas assets, a U.K broker said in note Friday. But people familiar with the situation in Luanda said the decision was tied to some disappointment over the relationship with China. "There are problems with the quality of their road works and with the unions. They don't involve locals" and instead bring workers from China, the person said. Eurasia Group said "there has been mounting frustration in Luanda over Chinese business practices." The consultancy said that included "oil-backed loans that have locked in lower-than-market prices and Sinopec's controversial decision to walk away from the Lobito refinery, a major priority of the (Angolan) administration." -By Benoit Faucon, Dow Jones Newswires; +44-20-7842-9266; benoit.faucon@dowjones.com Marathon to sell $1.3B Angolan field, but not to China thedeal.com

To: CommanderCricket who wrote (124515)	9/29/2009 2:32:15 PM
From: elmatador	Respond to of 206124

Putin Sounds More Welcoming Tone to Foreign Investors Chinma could come with that fat check book... By ANDREW E. KRAMER Published: September 29, 2009 MOSCOW — Russia's prime minister, Vladimir V. Putin, whose government took control of several oil companies when he served as president, gave a speech Tuesday saying the state must now step back from the economy and let private enterprise take the lead in pulling Russia out of recession. The speech, at a banking forum in Moscow, echoed recent assurances by his ministers and economic advisors that Russia is becoming more attentive to the concerns of investors. Mr. Putin also reiterated their suggestions that a new round of privatizations could be in the cards for Russia. The speech on economic policy was noteworthy for its exceptionally warm endorsement of a role for private investors. That had not been the case in recent years. “We understand how deceptive blind faith in an omnipotent state is, how illusory are the hopes that total intervention in economic life might fix everything and put everything in its place,” Mr. Putin said. He went on to praise private enterprise. “To the extent that the situation stabilizes, that the effects of the crisis are overcome, we plan to consistently and purposefully reduce state intervention in the economy,” he said, adding that a new round of privatizations could follow. The government already has been extending an olive branch to the petroleum industry, offering new investments and a greater role in a sector at a meeting with oil company executives last week. Mr. Putin noted that, while the government inevitably took stakes in Russian companies during the crisis, it did not use the downturn to impose greater controls and did not restrict the free conversion of the ruble. “We will continue the line of encouraging private initiative, integration into the global economy and the creation of a favorable investment climate,” he said. In his first term as president, from 2000 until 2004, Mr. Putin had introduced a number of pro-business reforms such as a flat tax and a streamlined system for registering small enterprises, but followed this in his second term with a sweeping extension of state control over the natural resources companies during the boom. On Tuesday, Mr. Putin took a different line. Russia may eventually liberalize even the trade in natural gas, though a monopoly would remain with Gazprom for exports for at least the medium term, he said. During the oil boom, export revenues exploded and foreign investors rushed to pile on to the economic expansion. If anything, the government struggled with the problem of too much money, sparking inflation and making local products uncompetitive with imported goods. That reversed last autumn, and Russia is now again in a position of having to compete for limited investor money with other emerging economies. “Now, with capital around the world much more scarce, there’s a recognition that Russia does have to play the game,” Rory MacFarquhar, an economist at Goldman Sachs’s office in Moscow, said in a telephone interview. “It does have to make overtures to foreign investors and it cannot take them for granted.” In one sign of some stabilization in the Russian economy, the Central Bank on Tuesday lowered its refinancing rate for the second time in two weeks, indicating it is less worried now about a run on the ruble and can instead focus on trying to stimulate lending to businesses.