PetroChina seeks non-state allies for joint ventures
Oil and gas giant looks to co-investments with private enterprises and foreign firms after its joint-venture experience with asset managers
PetroChina, the country's largest oil and gas producer, will seek further co-investments in projects with private enterprises and foreign firms after forming a joint venture with two fund management firms in June.
"We will expand our co-operation with external parties based on the innovative model we used in our gas pipeline joint venture," said president Wang Dongjin.
He said areas open to co-investments included overseas oil and gas projects, hard-to-extract oil reserves in northern China, expensive-to-pump natural gas reserves in Sichuan province and refinery projects in Guangdong, Guangxi and Yunnan provinces.
Weak profitability caused by state controls over energy price and rising debt prompted PetroChina to offload 50 per cent of some of its key gas pipelines to Taikang Asset Management and Beijing Guolian Energy Industry Investment Fund.
Both asset managers agreed to contribute 60 billion yuan (HK$75.5 billion) in cash while PetroChina injected the assets into the joint venture.
PetroChina yesterday posted a 5.6 per cent year-on-year rise in net profit to 65.5 billion yuan for the first half of the year, thanks to a 24.8 billion yuan gain booked by its natural gas and pipeline division. The profit beat analysts' forecasts by 3.6 per cent.
