Chinese oil firms eye Talisman, Santos -report
HONG KONG, May 26 (Reuters) - Chinese oil firms are considering investing in Canada's Talisman Energy Inc (TLM.TO) and Australia's Santos Ltd (STO.AX), Hong Kong's South China Morning Post newspaper reported on Monday, citing unnamed sources.
The paper said China's No. 3 oil firm, CNOOC Ltd (0883.HK), was in talks that could lead to asset sales or a complete takeover of Talisman, Canada's No. 3 oil explorer.
The newspaper also said PetroChina (0857.HK)(601857.SS) was considering taking a stake in Santos, Australia's No. 3 oil and gas producer.
Santos said earlier this month it was considering strategic initiatives, which analysts have said could be a decision on a joint venture partner for a $7.7 billion, 3-4 million tonne per year liquefied natural gas plant that uses coal seam gas.
Analysts have said firms with experience in LNG such as Royal Dutch Shell (RDSa.L), BP Plc (BP.L) and ConocoPhillips (COP.N) would be likely candidates.
Talisman and CNOOC settled a long-running dispute over a shareholding in the Indonesian Tangguh liquefied natural gas project in January, when CNOOC sold a 3.06 percent interest to Talisman for $212.5 million.
Last week Talisman said it would sell operations in the Netherlands, Trinidad and Denmark, raising about $2 billion and allowing it to focus on higher quality assets.
