Jiangsu Oilfield Co., a unit of China's No. 2 oil and gas producer, China Petrochemical Corp. (Sinopec), announced April 14 that it signed a pact with Yemen's Energy Ministry to explore an area of about 770 square miles in eastern Yemen for crude oil. The $10 million project will have two phases extending over three years each, Reuters reported. The Yemen announcement is the latest in a string of aggressive oil and natural gas acquisitions led by Chinese companies China National Petroleum Corp. (CNPC) and China National Offshore Oil Co. Many of these acquisitions, such as Sinopec's in Yemen, are in riskier markets — either from a security or political perspective. One of the primary reasons is that it is easier and cheaper for Chinese companies to break into these markets. That will continue to be the case as Chinese companies strive to join the big leagues.