Shanghai.? August? 17.? INTERFAX-CHINA? -? According to a latest foreign media report,? both? CNPC and Sinopec are interested in PetroKazakhstan,the Canada-based? oil firm, which has a capitalization of USD 3.2 bln on the Toronto stock market.

"The smaller bid, compared with the CNOOC bid for Unocal, will not cause much political? concern.? Also? acquiring a Kazakhstan-based oil company will be?? generally? easier? since? it? is? a? member? of? the? Shanghai Cooperation? Organization,"? Li? Zhipeng, with Xiangcai Securities, told Interfax.

Zhang Jian,? with? China? Securities, previously told Interfax that with less interference?? from?? western? countries? and? less? concern? about Kazakhstan's? national? interests,? acquiring? PetroKazakhstan? could be easier.

According? to? Zhang,? the? deal? is? different? from? CNOOC's attempted acquisition? of? Unocal since western countries had less interest in the embattled? company,? which? is facing a lawsuit from its Russian partner Lukoil concerning? the? alleged? misappropriation? of? oil. In addition, Kazakhstan? is? mainly? an oil exporter, so its national interests would not be greatly affected by the deal.

The main rival competing for the bid is the ONGC, an overseas subsidiary of the Indian Oil Corporation, said the Financial Times. According to the report, the joint venture formed by CNPC and its listed arm PetroChina,? has? completed? preparations? for? the bid, which might exceed USD 3.2 bln.

The report suggested the country's second largest oil company Sinopec is also interested? in? the deal and its only way to participate in the bid is to join? a? joint? venture,? with? the national government opposed to domestic oil companies competing for the same overseas oil assets.Neither CNPC and Sinopec were unavailable for comment.