PetroChina to establish a wholly owned pipeline subsidiary

Chinese oil and gas producer PetroChina intends to establish a wholly owned subsidiary, PetroChina Eastern Pipelines Co., Ltd, by making capital contribution with relevant assets and liabilities of the first and the second West-East Gas Pipeline (managed by the West-East Gas Pipeline branch), together with the relevant assets and liabilities of the second West-East Gas Pipeline, as verified by the company's Pipeline Construction Project Management Department.

PetroChina Eastern Pipelines will be incorporated within the Shanghai Pudong New Area with a registered capital of RMB10 billion. After the incorporation of PetroChina Eastern Pipelines, the company is planning to transfer its 100% interest in the subsidiary through a public tender at an equity exchange. The company will retain an intermediary to conduct an evaluation of the target equity and will use the evaluation results filed with CNPC as a basis for determining the transfer price of the target equity. Upon completion of the transfer, the company shall cease to hold any interest in PetroChina Eastern Pipelines.

The equity transfer will help PetroChina to develop its mixed ownership model, optimise resource allocation and its financing structure and diversify the ownership structure of the company.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/22052014/petrochina_to_establish_a_wholly_owned_pipeline_subsidiary_411/