CN PC restructuring gains momentum

摘要

China’s state-owned CNPC and its PetroChina subsidiary are restructuring their natural gas and oil field service assets, in a bid to reduce their role in unprofitable businesses and lower costs. CNPC’s Jichai and Dushanzi Tianli units have been threatened with de-listing from domestic stock exchanges-the companies produce non-road diesel engines and chemical products, respectively. They recorded losses in 2014-15 and the first quarter. Jichai will issue shares to buy financial firms Kunlun Trust and Kunlun Financial Leasing, in which CNPC owns interests of 82.18pc and 90pc, respectively. The move will allow CNPC to raise its stake in Jichai.