The Wall Street Journal said the deal for the privately held Canadian group would be worth US$2.2 billion and would help China with its growing energy needs.

    A spokesman for the Canadian firm declined to comment on the report.

    Nations Energy's main asset is the Karazhanbas oil field in Kazakhstan, which pumped 41,000 barrels of oil a day last year, according to the company's Web site. It also has exploration rights in Azerbaijan.

    State-owned CITIC -- China International Trust and Investment Corp. --- is a major global investment fund but has little experience in managing oil operations, according to the newspaper.

    Nations Energy, which posted a profit of US$124 million last year, has been trying to sell itself for over a year, according to the report.

    The move would come nearly a year after China's State-owned oil group CNOOC angrily withdrew its bid for U.S.-based Unocal in the face of opposition in Washington.

    Unocal, with major Asian operations, would have been a prized acquisition for China as the booming country seeks to gain access to new sources of energy to fuel its breakneck growth.

    (Source: Shenzhen Daily/Agencies)