ASIA’S biggest countries are locked in a battle for control of a Canadian oil company as they step up their scramble for energy assets to feed their fast-growing economies.

The little known PetroKazakhstan, based in Calgary, Canada’s oil capital, holds highly coveted oilfields in the former Soviet state. This week it became the latest focus of competition between China and India for natural resources, despite calls by officials for greater co-operation between the nations.

CNPC, of China, is said to have offered about $3.2 billion (£1.8 billion) for the company, while India’s Oil and Natural Gas Corp has submitted a $3.6 billion bid in partnership with Lakshmi Mittal, the British-based steel tycoon.

The bid by CNPC is the latest stage in China’s aggressive pursuit of energy assets. In recent years Western diplomats have watched warily as China has engaged in “oil diplomacy” in Africa and Latin America, accumulating assets in Angola, Chad and Gabon.

CNPC, which is anxious to avoid a repeat of the hostility and political pressure from the United States that forced CNOOC, of China, to abort its bid for the American group Unocal two weeks ago, has said that it would not make details of its bid for PetroKazakhstan public.

However, India, saddled with ageing oilfields, is just as determined to secure the Kazakh fields and has also embarked on a buying spree. The Indian Government set up a joint venture with Mr Mittal last month to buy oilfields from as far afield as Angola and Uzbekistan.

Yielding to pressure from the Toronto Stock Exchange, PetroKazakhstan said late on Monday that that it had received bid approaches for the entire company. A spokesman said that the company was assessing the proposals and would continue discussions with parties. However, the bidding process is complicated by the Kazakh Government, which can block any deal. The Government fell out with PetroKazakhstan this year over flaring of natural gas.

PetroKazakhstan is also facing a lawsuit from its partner Lukoil, the Russian oil giant.

Analysts believe that CNPC may be the best fit for PetroKazakhstan because it has been trying to build a pipeline to pump Kazakh crude to China. CNPC also has oil investments of its own in Kazakhstan. India, which does not share a border with Kazakhstan, would face problems exporting oil because any pipeline will have to be routed through Russia.

Analysts said that Chinese and Indian desire for oilfields could allow PetroKazakhstan to command a premium, which will be boosted even further by the record oil price. PetroKazakhstan accounts for 12 per cent of the output from Kazakhstan, where about 3.3 per cent of the world’s oil reserves are located.

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