China Trade Information

PetroChina Co. Ltd, China’s largest oil and gas producer, will acquire a 51.89% stake in CNPC (Hong Kong) from its parent China National Petroleum Company (CNPC) for HK$7.59 billion (US$972 million), market sources reported.

Under the agreement, the Beijing-based PetroChina will settle the transaction in cash.

The move is aiming to further expand the company’s gas business by cooperating with CNPC (Hong Kong) to establish gas ventures, including vehicle fuel gas and other natural gas businesses, in end-user markets.

This acquisition, which is expected to be completed by the end of this year, is pending approval from government authorities and regulatory bodies.

As the end of June, CNPC (Hong Kong) operates 11 oil and gas exploration projects in China, Kazakhstan, Oman, Peru, Thailand, Azerbaijan and Indonesia.

On Wednesday, PetroChina announced that its net profit for the first half fell 34.4% year-on-year from RMB 81.83 billion to RMB 53.62 billion a year earlier. Refining losses and windfall taxes had dented gains from soaring crude prices, according to PetroChina’s filing with the Shanghai Stock Exchange.

Tags: CNPC, PetroChina, Petroleum

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