China’s largest oil company, PetroChina Co. announced on Monday evening, it plans to sell 38.95 billion yuan net asset value of west-east gas pipeline assets, to promote the development of the mixed ownership economy, to optimize the company’s asset allocation and financing structure, realize the diversification of property rights structure.
This is another important measure of large state-owned enterprises to promote the reform of the mixed ownership with the central, after China Petroleum & Chemical corp. announced that it would introduce social and private capital to run its oil sales business.
“The proposal about setting up the Eastern oil pipe PetroChina co., LTD. and the transfer of property rights related issues” is approved by PetroChina’s board of directors on Monday.
According to the bill, PetroChina pipeline plans to fund the wholly owned subsidiary, Eastern oil pipe Petrochina co., LTD. through assets and liabilities about first and second west-east project which managed by west-east gas pipeline subsidiary corp., as well as the assets and liabilities associated with the second west-east project accounted by pipeline construction project manager department.
East Pipeline Company is planed to be registered in Shanghai Pudong New Area, the registered capital is planed to be 10 billion yuan. After the establishment of East Pipeline company, PetroChina plans to transfer publicly its 100% stake of East Pipeline Company through property exchange, and no longer have any stake of East Pipeline Company.
According to the announcement, KPMG audited the invested assets and the end of 2013 as the base day, the total assets is 81.67 billion yuan, total liabilities is 52.67 billion yuan, net assets is 29 billion yuan.