China’s MIE sells assets again to shore up finances amid oil plunge

Struggling oil and gas producer MIE Holdings has unveiled its second major asset disposal in two months, agreeing to sell its two coal seam natural gas projects in Shanxi province for around US$220 million to a mysterious firm registered in Hong Kong.

Hong Kong-listed MIE, controlled by chairman Zhang Ruilin and brother-in-law and executive director Zhao Jiangwei, on Tuesday inked an agreement to sell the projects to Hong Kong-incorporated China New Energy Mining, MIE said in a stock exchange filing on Wednesday. One of these entered trial production late last year.

“In view of the prolonged volatility of crude [oil] prices ... the disposal opportunity shall further enhance the financial strength and liquidity of the group,” MIE said, adding it would allow it to pursue potential acquisition opportunities “that may provide more long-term strategic value” and manage its liabilities.

The sale came close on the heels of MIE’s agreement last month to sell a 60 per cent stake in some oil-producing assets in Kazakhstan to Malaysia-listed oil and gas investment firm Reach Energy for US$154.9 million.

China New Energy focuses on oil and gas exploration and development, and its management team comprises “industry veterans with extensive exploration and development experience” in China, Indonesia, Kazakhstan, MIE said.