The market chatter over forming a giant Chinese oil major through merging PetroChina and Sinopec has ramped up again recently, but the motivations for such a deal struggle to stand up to scrutiny.
LAUNCESTON, Australia, Feb 27 (Reuters) - The market chatter over forming a giant Chinese oil major through merging PetroChina and Sinopec has ramped up again recently, but the motivations for such a deal struggle to stand up to scrutiny.
The Chinese authorities are mulling joining China National Petroleum Corp, the parent of PetroChina, and China Petrochemical Corp, the parent of China Petroleum and Chemical Corp, better known as Sinopec, the Wall Street Journal reported on Feb. 18.
It should be noted that even if the authorities are considering such a move doesn't necessarily mean it will happen.
However, the fact that the news has made it into the public domain most likely means the possibility is being considered.
It was also reported in other media that a merger between China National Offshore Oil Corp, the parent of CNOOC, with Sinochem Corp was under consideration as well.
The most often cited reason for creating a mega-oil company is to give China the means to compete on a truly global scale, as such an entity would no doubt eclipse Exxon Mobil as the world's biggest non-state oil company.
While both PetroChina, the country's largest oil producer, and Sinopec, the largest refiner, are effectively state controlled, they operate differently to the models of national oil companies, such as those found in Middle East countries.
View Full Article
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you