Shares in Imperial Energy rose steeply, valuing it at over £1.1bn, after it announced a bid approach which could lead to a cash offer. Experts stated that the mystery bidder was most certainly the state-controlled China Petroleum & Chemical Corporation (SINOPEC).

Discussions were underway with the Oil and National Gas Corporation of India (ONGC), which, like Sinopec, was desperate to acquire energy assets around the world to meet growing demand at home.

Imperial, formed in 2004 by Pete Levine, had a portfolio of oil and gas assets in western Siberia and Kazakhstan, but was currently producing only 10,000 barrels a day. It plans however to accelerate the output to about 80,000 by the end of 2011. Recoverable reserves at its assets were estimated at 900 million barrels.

Reports also pointed out that the Russian government would not stand in the way
of either the Chinese or Indian groups taking over valued assets within its territory1.

• 1. Cliff Feltham, “Chinese and Indian oil giants in battle for Imperial Energy,” August 5, 2008, at http://asianenergy.blogspot.com/2008/08/chinese-and-indian-oil-giants-in...