China National Petroleum Corporation (CNPC) has been granted a $30bn state-backed loan to finance overseas takeovers.

CNPC and CDB signed a long-term strategic cooperation agreement for investment that is expected to be used to finance takeovers in Canada, Latin America and other nations with untapped oilfields.

CNPC’s president Jiang Jiemin said that the credit agreement was significant as it would expedite the company’s consolidation plans and help secure China’s power supplies.

CNPC is one of many Chinese oil and gas companies trying to capitalise on low commodity prices and acquisition opportunities emerging from the economic downturn.