China’s State Owned Oil Giants Plans for a Merger
China Petrochemical Corp. is denying reports that the government is planning to merge it firm with another domestic energy giant China National Petroleum Corp. the Wall Street Journal reported that the country is looking for ways to consolidate their oil industry using a merger between two State Owned companies that share similar knowledge in the business area with one option under consideration.
Although no officials reports on the merger have been released to the public yet, a different option is being studied to merge CNOOC main offshore oil and natural gas producer with the petrochemical company Sinochem. A spokesperson said that he government is now planning structural reforms to the energy industry for 2014 and the reform plans will be released in the first half of this year and promises to have significant impact to the current oil and gas system.
In a different part of the matter Global Times reported that any chances of a merger between China National Petroluem Corp. with Sinopec is slim and might be subject for more discussion.