China: PetroChina Purchases Fuel distribution Assets From CNPC
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Thursday, 12 June 2008 |
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PetroChina Co. Ltd. said its board of directors has approved
the purchase of several fuel distribution assets from its parent company, state-owned China National Petroleum Corp.,
for a total price of more than one billion yuan. The company also said this week that
it intends to raise up to 60 billion yuan through the issue of domestic bonds in order to reduce financing
costs and supplement its working capital. In addition, the company
PetroChina said that its board approved the purchase of 208 service stations and 25 oil
storage facilities from its conrtolling sharholder, state-owned China National Petroleum Corp., for
a total price of more than one billiion yuan.
In a filing with the Hong Kong Stock Exchange, the company said
that its board will seek shareholders' approval for the proposed issue
of the Domestic Corporate Bonds in the People's Republic of China with
an aggregate principal amount of not more than 60 billion yuan in one
or more tranches. The company said that an extraordinary general
meeting of shareholders would be held on July 31 at Beijing to approve
the proposed bond issue.
PetroChina intends to increase capital spending by 15% in the current year to meet the rising energy
demand in China, the world's fastest-growing economy. Meanwhile, the company has been forced to sell
gasoline and diesel below cost as the Chinese government has placed a cap on fuel prices to protect
its people from rising oil costs.
The company intends to use the proceeds of the bond issue to satisfy its demand for mid-term and
long-term capital requirements and for investments in projects such as the second West-East Gas Pipeline
project in China. The specific use of proceeds would be determined by its board of directors in accordance
with the capital needs of the company. The duration of the domestic bonds shall not exceed 15 years,
the company said.
PetrolWorld 110608
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