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Speculation is mounting that Swiss-Canadian exploration and development company Addax Petroleum is attracting interest from third parties about a possible acquisition.
The rumours centre around a proposed takeover by one of the two Chinese hydrocarbons giants, CNPC and Sinopec as well as Korea National Oil Corp. (KNOC) of South Korea.
“Addax Petroleum Corporation has been made aware of press speculation involving the Corporation and the interest in it by third parties with respect to a possible acquisition or business combination,” the company said in a statement.
“In response to that press speculation, Addax Petroleum acknowledges that it has held preliminary discussions with third parties expressing an interest in a potential transaction with the Corporation.”
“While such preliminary discussions are ongoing, no assurance can be given that a transaction will be completed. Addax Petroleum does not intend to make further comment unless or until there is a transaction to announce,” it added.
It is believed that Addax Petroleum’s significant holdings in Iraqi Kurdistan is the carrot that is attracting the other countries. The company is a partner in the Taq Taq field in the area.
Samuel Ciskuk, Middle East energy analyst for IHS Global Insight believes any potential bidder will have to take into account geopolitical factors over the Kurdistan Regional Government’s authority to award oil licences.
“China’s CNPC and Sinopec have been mentioned, although their stated interest in bidding for upstream licences in Iraq’s imminent first licensing round make this somewhat uncertain, given that KRG investors still are being blacklisted and banned from investment in Iraq proper by the Iraqi Oil Ministry,” Ciskuk said.
