Sinopec plans US$1.5b listing for oilfield service unit

China Petrochemical Corp, the parent firm of listed oil and gas major China Petroleum & Chemical Corp (Sinopec), is planning a US$1.5 billion Hong Kong initial public offering for its oilfield service unit next year, people familiar with the matter said, part of Beijing's push to attract more private capital to the country's state-owned enterprises.

The unit, Sinopec Oilfield Service Corp, provides engineering and technical services for companies engaged in oil and gas exploration and production.

Investment banks were recently invited to pitch for the listing mandates, which were expected to be awarded in the next few months, the people said.

The sources declined to be identified as the details of the offering have not been officially announced.

Sinopec posted a 36 per cent rise in second-quarter profit that beat forecasts as an improvement at its refining and marketing businesses more than offset a weakening chemicals division. The company is the country's second-largest oil and gas producer and Asia's biggest refiner.

Net profit rose to 18.44 billion yuan (HK$23.2 billion) for the April-June period from 13.58 billion a year earlier, the company said in a filing with the Shanghai exchange.