It would seem out of character for Buffett, an outspoken advocate of transparent management practices, to place a bet on a company in what is apparently so opaque a sector. But the central government's firm grip on China's oil industry may actually be at the heart of the PetroChina's appeal.
"Buffett's not betting on PetroChina becoming the next Shell or BP, though that may be their ultimate ambition," said Philip Andrews-Speed, an expert on China's oil industry at the University of Dundee in Scotland. "He's betting against energy-sector liberalization in China."
The expectation that Beijing will shield PetroChina and its Chinese peers from foreign competition adds to hopes that China, as it industrializes, will remain one of the fastest growing energy markets for years to come.
Deborah Bosanek, Buffett's assistant, declined to comment on Berkshire Hathaway's PetroChina stake, but she said in a telephone interview that she expected Buffett to field questions from investors and reporters on the matter this weekend.
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