Xinchao pursues $1b oil deals in Permian Basin

China's Yantai Xinchao Industry Co is pursuing US oil acquisitions worth as much as $1 billion in the Permian Basin, and it won't be satisfied letting others run the show, according to the head of the company's US subsidiary.

Unlike other Asian companies that bought stakes in United States energy prospects in recent years, Xinchao is seeking so-called operated positions, or deals that give it primary authority over everything from how deep to drill to how intensively to frack each well, said Curtis Newstrom, chief executive officer of Blue Whale Energy North America Corp, the US arm of the Shanghai-listed company.

Houston-based Blue Whale made a splash last year with its first two deals on behalf of its Chinese parent, a company virtually unknown in US exploration circles: A $315 million acquisition of drilling rights across 7,100 acres from Juno Energy II in April 2015 and a $1.1 billion transaction in November with Tall City Exploration LLC and Plymouth Petroleum LLC. Both deals involved Texas oil fields. It is now on the search for other assets valued at between $500 million and $1 billion, he said.