Domestic firms face tough battle for top oil assets

China's State-owned oil giants are likely to lose out to global rivals in a race for top energy assets, as they lack experience and hit a protectionist wall, forcing them to settle for smaller, but riskier buys.

This inability to buy top assets could limit growth potential at PetroChina, Sinopec and CNOOC, and put CNOOC at risk of missing its ambitious production targets, analysts said.

Kosmos Energy's recent decision to award its prized Jubilee oil field stake in Ghana to Exxon Mobil over CNOOC is the latest sign that Chinese energy companies are not ready for oil prime time, bankers said.