China’s largest independent “teapot” refinery is looking to set up a fund to acquire overseas upstream assets as it seeks to take advantage of cheaper valuations, refining sources tell PIW. Shandong Dongming Petrochemical will invite other teapots from eastern Shandong province to join the fund to form a “financial pool” that could bankroll an international asset purchase, the sources say. The refiner aims to launch the fund this June, with an eye on raising up to 3 billion yuan ($455 million) as seed capital. Ambitious Dongming, which has a crude oil import quota and supply deal with BP under its belt, has already been approached by foreign companies looking to divest upstream assets in the US and Africa (PIW Nov.23’15).
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