China National Petroleum Corporation

Mainland listing for CNPC arms

PUBLISHED : Thursday, 12 February, 1998, 12:00am
UPDATED : Thursday, 12 February, 1998, 12:00am

Mainland oil monopoly China National Petroleum Corp (CNPC) is preparing to allow five more subsidiaries to tap stock markets as part of a move to diversify shareholding structure.

The five enterprises ready to be floated include two B share candidates, Qinghai Oilfield Natural Gas and Jilin Hongyuan Oil Development.

Liaohe Jinma Oilfield, Hanjiang drill plant and Zhongyuan Oil and Gas would attempt flotations on the domestic investor-only A share market.

Later this year, CNPC's listed arm in the SAR, CNPC (Hong Kong), will complete its purchase of the 70 per cent production-sharing interest in the Leng Jiapu Oilfield.

CNPC would issue clear principles for shareholding reform to ensure its listed vehicles could raise funds and improve efficiency, the company was quoted as saying by the Shanghai Securities News.

The company, which has a monopoly on onshore oil exploration, development and production on the mainland, raised 257 million yuan (about HK$238.9 million) through three A-share companies that were listed in 1996.

It is understood other oilfields, such as Dagang Oilfield, near Tianjin, also hope to list assets to fund expansion.