PetroChina to sell major pipeline assets to PipeChina for $38 bln

Kunlun Energy

23/07/2020 16:51

July 23 (Reuters) - PetroChina, China's state-owned oil and
gas firm, said on Thursday it would sell its major oil and gas
pipelines and storage facilities to the newly launched China Oil
and Gas Pipeline Network (PipeChina) for 268.7 billion yuan
($38.36 billion).
    The sale excludes the assets of Kunlun Energy  0135.HK , in
which PetroChina  601857.SS   0857.HK  has a 54.4% stake, it
said in a statement.  urn:newsml:reuters.com:*:nHKSc5yJmh
    Separately, China Petroleum & Chemical Corp  600028.SS 
 0386.HK  (Sinopec) on Thursday announced https://bit.ly/3jyPldG
 plans to sell some of its oil and gas pipeline assets for 47.11
billion yuan to PipeChina, of which 22.89 billion yuan will be
injected into PipeChina for an equity interest.
    Launched in December last year as part of a sector-wide
reform, PipeChina had not been allocated any asset until this
week, despite signing agreements with the national oil majors.
 urn:newsml:reuters.com:*:nL4N28G29L
    The deals come as a part of Beijing's plans to boost
investment in oil and gas production and provide a fair market
access to small, non-state owned oil and gas producers and
distributors.
    The deal will give PetroChina a stake of about 30% in
PipeChina. The stake is worth 149.5 billion yuan, PetroChina
said. The remainder will be paid in cash.
    Upon completion of the transactions, PipeChina will become
an associate company of PetroChina, a listed arm of CNPC.
    PetroChina expects to book a gain of 45.82 billion yuan from
the disposal of its assets, which it will use to pay dividend
and for capital expenditure, it said in a statement.
 ($1 = 7.0049 Chinese yuan renminbi)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Saumyadeb
Chakrabarty)
 ((Sameer.Manekar@thomsonreuters.com; +918061823447;))