The China National Petroleum Corporation (CNPC), China's largest oil producer, and India's Oil and Natural Gas Corporation (ONGC), have jointly reached an agreement with Petro-Canada to buy its oil assets in Syria, said sources with the CNPC Wednesday.

This is the first bid jointly made by a Chinese oil company and an Indian company for overseas oil assets, said a personnel with CNPC.

According to information published on the official website of Petro-Canada, both companies will buy assets for 484 million euros (576 million US dollars).

Al-Furat Petroleum Company operates the assets in Syria. As a joint venture, Al-Furat is owned by the Syrian Petroleum Company, Syria Shell Petroleum Development B.V. (Shell) and Petro-Canada.

After the transaction, CNPC and ONGC will together hold over 30 percent assets of Al-Furat, which had been held by Petro-Canada and enjoys an annual oil output of more than three million tons.

The deal is expected to close in early 2006, subject to Syrian government consent, according to the website of Petro-Canada.

ONGC had been a major rival of CNPC during the bid for Canada-based PetroKazakhstan Inc.. CNOOC announced the successful close of the acquisition this October, the largest overseas acquisition ever made by a Chinese company.

As two countries witnessing the fastest economic growth and energy demand rise in the world, China and India are strengthening their cooperation.

During his visit to India this April, Chinese Premier Wen Jiabao signed the joint statement with his Indian counterpart Manmohan Singh, which includes a part stating that both countries will cooperate in the field of energy security and conservation, including, among others, encouraging relevant departments and units of the two countries to engage in the survey and exploration of petroleum and natural gas resources in third countries.

The visit of the Indian Minister of Petroleum and Natural Gas Mani Shankar Aiyar to China next January is expected to further enhance cooperation in the overseas energy fields of both countries.

Source: Xinhua