Page 14 - Oil&Gas-AustralAsia-2015-Issue-2
P. 14
C HINA
Speculation rife on NOC merger
By Marie RYAN
pec officials have denied any merger of China’s National Development and
The Cambodian government and claims. “Neither the company nor Reform Commission (NDRC) said that
Market speculation is rife in China its controlling shareholder has ever smaller independent refiners would be
with both domestic and international received any information, written or allowed to import their own crude oil,
media outlets reporting two of China’s verbal, from any government authority,” instead of having to rely on the large
national oil companies (NOCs) Sinopec Sinopec said in a statement to the Hong NOCs for feedstock supplies.
and PetroChina could merge creating Kong Stock Exchange (HKEx). The NRDC deputy director said that
the world’s largest oil industry concern, PetroChina issued a similar statement China will open more of its energy im-
equalling US based ExxonMobil in to the Shanghai Stock Exchange (SSO). port and export markets in an orderly
terms of market capitalisation. Both PetroChina and Sinopec are trad- manner, however analysts within China
If the deal was to ahead, Sinopec and ed on the HKEx as well as the SSO and claimed this would have little impact to
PetroChina would have a combined the New York Stock Exchange (NYSE). help deregulate the industry.
market capitalisation of around US$333 Reuters reported this was the first time A different scenario is estimated to be
billion matching ExxonMobil’s $368 Sinopec and PetroChina have “formally playing out as global oil prices have
billion market cap. downplayed Chinese and foreign media plunged by around 50 per cent since
The speculation came amid reports reports over the past few months that mid-June and China’s oil majors are
from Beijing outlining plans to consol- Beijing is considering merging Sino- feeling the pinch. The same day that
idate its oil and gas industry, including pec’s parent with China National Pe- merger speculation reports broke,
its oil majors, adding substance to the troleum Corp., (CNPC) which controls PetroChina reported an 82 per cent
merger rumours. PetroChina.” drop in first quarter profit due to lower
China’s Economic Information Daily Analysts speculate the two oil majors global oil prices and inventory write-
reported that the country’s state assets have not denied earlier claims of a downs at its refining division. Sinopec
regulator is considering cutting the merger giving substance to the claims, also reported that its profit plunged by
number of state-owned enterprises while others speculate merging the two 85 per cent in the first quarter.
to 40 from 112 through mergers and companies would go against Beijing’s Speculators agree a merger of PetroChi-
restructuring, however the report did stated policy of allowing markets to na and Sinopec would add impressive
not mention PetroChina or Sinopec by play a greater role in the allocation of economies of scale across their up-
name. resources. stream, mid-stream and downstream
This latest speculation comes after a In recent years Beijing has taken steps sectors and make it an even more
Wall Street Journal article reported that to allow greater reform in the oil and formidable competitor on the global
Beijing was considering merging the gas industry that has been dominated world stage.
two NOCs, media reports in the past for decades by its NOCs. It has been noted a merger could also
month have caused the shares of both In March, Jiang Xinmin, a deputy di- help Chinese President Xi Jinping’s an-
energy giants to surge by 10 per cent. rector at the Energy Research Institute ti-corruption campaign that has recent-
However both PetroChina and Sino- ly targeted top oil company executives.§
China Oil and Gas Group Limited and Jinlu Gas Hold Grand
Signing Ceremony for Equity Cooperation
China Oil and Gas (Zhuhai) Investment the signing ceremony. promote the business in Taizhou. He
Co., Ltd.and Taizhou Jinlu Natural Parties held talks and exchanged opin- also stated that he would fully support
Gas Co., Ltd. Recently held a grand ions on further deepening cooperation. the development of the joint venture,
signing ceremony for equity coopera- Vice President Liu Chunsun pointed capitalize on its advantages in aspects
tion. Group Vice President Liu Chun- out that both parties have inherent like brand, professionalism and ser-
sun, President Assistant and General advantages in terms of developing nat- vice, and constantly drive the overall
Manager of Gas Business Division Liu ural gas projects in Taizhou. With the improvement of natural gas industry in
Lianyong, General Manager of Taizhou official conclusion of Equity Coopera- Xinghua, to realize mutual benefit and
branch Zhao Liang and Chairman of tion Agreement, the partnership of the win-win result.§
Jinlu Gas Zhang Zhan participated in two strong companies will effectively
A A12 OIL & GAS ustral SIA MAY/JUNE 2015 www.oilandgasaustralasia.com
Speculation rife on NOC merger
By Marie RYAN
pec officials have denied any merger of China’s National Development and
The Cambodian government and claims. “Neither the company nor Reform Commission (NDRC) said that
Market speculation is rife in China its controlling shareholder has ever smaller independent refiners would be
with both domestic and international received any information, written or allowed to import their own crude oil,
media outlets reporting two of China’s verbal, from any government authority,” instead of having to rely on the large
national oil companies (NOCs) Sinopec Sinopec said in a statement to the Hong NOCs for feedstock supplies.
and PetroChina could merge creating Kong Stock Exchange (HKEx). The NRDC deputy director said that
the world’s largest oil industry concern, PetroChina issued a similar statement China will open more of its energy im-
equalling US based ExxonMobil in to the Shanghai Stock Exchange (SSO). port and export markets in an orderly
terms of market capitalisation. Both PetroChina and Sinopec are trad- manner, however analysts within China
If the deal was to ahead, Sinopec and ed on the HKEx as well as the SSO and claimed this would have little impact to
PetroChina would have a combined the New York Stock Exchange (NYSE). help deregulate the industry.
market capitalisation of around US$333 Reuters reported this was the first time A different scenario is estimated to be
billion matching ExxonMobil’s $368 Sinopec and PetroChina have “formally playing out as global oil prices have
billion market cap. downplayed Chinese and foreign media plunged by around 50 per cent since
The speculation came amid reports reports over the past few months that mid-June and China’s oil majors are
from Beijing outlining plans to consol- Beijing is considering merging Sino- feeling the pinch. The same day that
idate its oil and gas industry, including pec’s parent with China National Pe- merger speculation reports broke,
its oil majors, adding substance to the troleum Corp., (CNPC) which controls PetroChina reported an 82 per cent
merger rumours. PetroChina.” drop in first quarter profit due to lower
China’s Economic Information Daily Analysts speculate the two oil majors global oil prices and inventory write-
reported that the country’s state assets have not denied earlier claims of a downs at its refining division. Sinopec
regulator is considering cutting the merger giving substance to the claims, also reported that its profit plunged by
number of state-owned enterprises while others speculate merging the two 85 per cent in the first quarter.
to 40 from 112 through mergers and companies would go against Beijing’s Speculators agree a merger of PetroChi-
restructuring, however the report did stated policy of allowing markets to na and Sinopec would add impressive
not mention PetroChina or Sinopec by play a greater role in the allocation of economies of scale across their up-
name. resources. stream, mid-stream and downstream
This latest speculation comes after a In recent years Beijing has taken steps sectors and make it an even more
Wall Street Journal article reported that to allow greater reform in the oil and formidable competitor on the global
Beijing was considering merging the gas industry that has been dominated world stage.
two NOCs, media reports in the past for decades by its NOCs. It has been noted a merger could also
month have caused the shares of both In March, Jiang Xinmin, a deputy di- help Chinese President Xi Jinping’s an-
energy giants to surge by 10 per cent. rector at the Energy Research Institute ti-corruption campaign that has recent-
However both PetroChina and Sino- ly targeted top oil company executives.§
China Oil and Gas Group Limited and Jinlu Gas Hold Grand
Signing Ceremony for Equity Cooperation
China Oil and Gas (Zhuhai) Investment the signing ceremony. promote the business in Taizhou. He
Co., Ltd.and Taizhou Jinlu Natural Parties held talks and exchanged opin- also stated that he would fully support
Gas Co., Ltd. Recently held a grand ions on further deepening cooperation. the development of the joint venture,
signing ceremony for equity coopera- Vice President Liu Chunsun pointed capitalize on its advantages in aspects
tion. Group Vice President Liu Chun- out that both parties have inherent like brand, professionalism and ser-
sun, President Assistant and General advantages in terms of developing nat- vice, and constantly drive the overall
Manager of Gas Business Division Liu ural gas projects in Taizhou. With the improvement of natural gas industry in
Lianyong, General Manager of Taizhou official conclusion of Equity Coopera- Xinghua, to realize mutual benefit and
branch Zhao Liang and Chairman of tion Agreement, the partnership of the win-win result.§
Jinlu Gas Zhang Zhan participated in two strong companies will effectively
A A12 OIL & GAS ustral SIA MAY/JUNE 2015 www.oilandgasaustralasia.com
