PetroChina, China’s top oil and gas producer, will hive off part of its pipeline business to form a new company that will then be sold to expand its ownership mix, Xinhua reported Monday.
The new company, possibly to be called East Pipeline Co., will be formed around the west-east gas pipeline managed by its pipeline subsidiary, and all shares will be transferred after its establishment, PetroChina said in a filing to the Shanghai Stock Exchange.
The assets involved are estimated to be over 82 billion yuan (US$13 billion) and liabilities roughly 53 billion yuan, the report said. It will have 10 billion yuan in registered capital.
PetroChina said the move will improve its resource distribution and financing structure.
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