More Chinese rigs to South America

This time via Peru, according to this report from the Peruvian state newswire. (h/t China South America):

# Lima, Oct. 22 (ANDINA). Chinese corporation Kerui Group announced its interest in entering the Peruvian market by setting up an oil and gas equipment plant with an initial investment of US$10 million.

The President of Shandong Kerui Group Holding Corporation, Yang Xian, explained that this venture into our market aims to meet oil equipment demands of countries such as Colombia, Ecuador, Venezuela, Bolivia and Brazil

The company’s purpose is to benefit from the excellent geopolitical location and the favorable business environment of Peru.

“Politics and economic activity in Peru is better than in other Latin American countries such as Venezuela. We can strengthen our presence in Latin America from there, that would be our next task,” he pointed out.

Note the little dig at Venezuela. Like the USA or any other commercial powerhouse, China is happy to jab countries in the ribs for being unfriendly to investment. In the case of Venezuela, Chinese companies have had to back out of a lot of plans because of slow permitting and because local laws that require the Chinese firms to use mostly Venezuelan workers, rather than their usual tendency of hauling in a bunch of expats. I don’t know much about how Peru compares on these fronts.

One thing this Chinese company may find is that South America’s road and rail network isn’t well set up for international trade. Moving an oil rig from Peru to eastern Colombia, Venezuela or the new prospects in Suriname and Guyana? May as well haul it over from China.