CNPC pilots ownership reform in Xinjiang to attract capital   

中石油敲定新疆为勘探开发领域混改试点 引地方资本

中石油已敲定新疆为勘探开发领域混改试点，将拿出区内油田区块不超过49%的股权引入地方资本，目前其旗下第三大油田塔里木油田塔中区块已与新疆能源集团及阿克苏地区政府签订合作协议，马上将进入实施阶段，其他拟出让区块的合资开发也正在洽谈中。 [查看全文]

(ECNS) – The China National Petroleum Corporation (CNPC), China's largest oil and gas producer and supplier, will pilot mixed-ownership reform in the Xinjiang Uygur autonomous region, the Economic Information Daily reported Thursday.

"The company has set up six investment and cooperation platforms in the fields of oil and gas pipes, undeveloped reserves, exploitation of unconventional oil and gas resources, refinery operations, overseas operations and natural gas terminals," said Zhou Jiping, a member of the national committee of the Chinese People's Political Consultative Conference (CPPCC) at the sideline of the ongoing annual sessions. Zhou is also the CNPC's board chairman. [Special coverage]

The CNPC has selected Xinjiang as a pilot region for sales, exploitation and development. According to a framework agreement on oil and gas resources cooperation, the company will seek local state-owned capital and private capital to co-develop part of its Karamay, Tarim and Turfan-Hami oilfields. The CNPC will hold a controlling stake of at least 51 percent in these ventures.

The CNPC released a pipe asset ownership reform plan last May but made no progress with the plan. This year, it made adjustments to the direction and order of reforms and decided to pilot ownership reform in some provinces and cities first.

The Tarim oilfield, which will take the lead in opening up to local capital, is the third largest oilfield under the CNPC and dubbed "the energy and economic artery of West China" by some economists. Its oil and gas output totaled 24.67 million tons in 2014.

A joint development agreement will be implemented soon and the venture is estimated to generate 500,000 tons of oil annually, the report says, citing Xie Wenyan, general manager of the Tarim Oilfield Company, PetroChina, the listed arm of the CNPC. Xie said initial investment was planned at billions of yuan and will increase in the future. Xinjiang Energy Co and the Aksu prefecture government will hold a combined stake of less than 50 percent in the venture, he added.

The move looks attractive to private investors and local state-owned enterprises, but the investment threshold remains steep as oil and gas exploitation requires high technology and high investment, Xie said.