EXPLORATION company Dragon Oil's link with investment group Sinoil Asia is part of its bid to be the region's pre-eminent specialist oil company, according to a director.
Thomas Fussell believes rapid economic growth in China will put pressure on mainland authorities to increasingly turn to outside help in finding and developing oil reserves.
Mr Fussell's comments follow the company's sale of a 20.9 per cent stake to Sinoil for about HK$100.8 million and the appointment of four Hong Kong directors.
Mr Fussell said: 'These guys have spotted the synergy between our technical expertise and their contacts in the region.' Dragon Oil, which has expressed a desire for a listing in the territory, is also launching a placement and rights issue to raise an additional HK$26 million as part of the Sinoil investment.
In the past seven years the company has been involved in oil projects in the Philippines, South Korea, Thailand and Burma.
Mr Fussell is hoping to increasingly focus the company's activities on China, which on present projections could turn from being an oil exporter to an importer over the next few years.
Regional demand for petrochemicals is expected to grow by up to nine per cent annually, more than double world growth, because of increasing Asian exports, such as textiles, clothing, footwear and machinery.
