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China National Offshore Oil Corp (CNOOC) Limited, one of the
country's three largest oil companies, is expected to go public,
both at home and abroad, in February.
The announcement was made by the company's vice-president Zhou
Shouwei at a news conference for the Seventh China International
Oil and Gas Conference Fair.
Zhou said that CNOOC Limited plans to float stocks in Hong Kong
and New York.
"Listing is an important part of CNOOC Limited's future
capital operation," Zhou said.
Capital operation is one of the company's primary strategies
for growth in the future, especially during the country's 10th
Five-Year Plan (2001-05), Zhou said.
Analysts say that listing is an important way for domestic oil
enterprises to raise more funds for future development.
China's other two State-owned oil giants, PetroChina of China
National Petroleum Corp (CNPC) and Sinopec Co Ltd under China
Petrochemical (Group) Corporation (Sinopec), went public in
April and October respectively.
PetroChina, listed on Hong Kong and New York stock exchanges,
has picked up about US$3 billion. Sinopec Co Ltd - the country's
first State-owned conglomerate to go public in Hong Kong, New
York and London simultaneously - raised US$3.7 billion in its
initial public offering last month.
Zhou did not speculate on how much CNOOC Limited will raise
after it makes its appearance on the exchanges. He did say,
however, that most of the funds raised will be used in construction
of exploration projects and in the acceleration of its natural
gas development projects.
The company predicts its annual oil and gas output will reach
40 million tons in 2005.
This may prove important, as insiders have said that growth
in China's oil and gas production will primarily depend on that
of CNOOC Limited during the 10th Five-Year Plan.
The country has been experiencing a widening gap between oil
production and demand in recent years.
Zhou said CNOOC will increase its natural gas output to 10 billion
cubic meters per year by 2005, significantly more than current
output of 4 billion cubic meters.
The company plans to establish an integral natural gas pipeline
network in China's coastal areas, including the Hong Kong and
Macao special administration regions, within next 10 years,
Zhou said.
CNOOC possesses total proven natural gas reserves of 4,560 billion
cubic meters in Chinese offshore areas.
The central government has decided natural gas should play a
bigger role in fulfilling the country's energy needs, as it
pollutes less.
Natural gas's proportion in the energy consumption mix is expected
to rise to around eight percent in the next 10 years. It currently
accounts for 2.2 per cent.
Zhou said CNOOC Limited is additionally looking to expand its
downstream operations in chemicals, fertilizer and liquefied
natural gas.
At the end of last month, CNOOC signed with Shell Chemicals,
a member of the Royal Dutch/Shell Group, to build and operate
a US$4 billion petrochemical project based in Guangdong Province.
The move marks the company's initiation of downstream businesses,
Zhou said.
The oil and gas conference and fair, scheduled for November
7 to 10 in Beijing, is cosponsored by the China Petroleum Society,
the International Society of Petroleum Engineers, CNOOC, CNPC
and Sinopec.
The event administrators also will organize a seminar about
oil-related economics and management for Chinese and foreign
oil officials and experts.
(China Daily 11/07/2000)
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