China

(Bloomberg) — China, which agreed last week to acquire a share in a Kazakh oil producer, will provide financing for overseas asset bids by domestic oil companies taking advantage of slumping energy prices, an industry official said.

The government will take up stakes in overseas oil projects that it will help to acquire, the official, who declined to be named, said in Shanghai today. The government will announce the financing plan as part of its oil and petrochemical stimulus package, due within a week, he said. The size of the energy stimulus, approved in February, is yet known.

Under the stimulus plan, the government will take steps to increase oil-product stockpiles, boost fuel demand, adjust tax policies and extend more loans to petrochemical companies, the State Council, or Cabinet, said on Feb. 19. The measures will add to the 4 trillion yuan ($585 billion) of spending announced in November to support the economy amid the global recession.

PetroChina Co.