November 24, 2017 / 10:17 AM / a year ago

China's CNPC restructures oil service units ahead of IPO - Caixin

BEIJING, Nov 24 (Reuters) - China National Petroleum Corp has started restructuring its fragmented oilfield service units in preparation for an initial public offering, Chinese financial publication Caixin reported on Friday, citing unnamed people with knowledge of the plan.

The state-owned oil giant, parent of PetroChina, plans to register next month the new entity, CNPC Oilfield Service Co Ltd, that will include mainly eight drilling subsidiaries, according to the report.

These units, such as Daqing Drilling, Greatwall Drilling and Bohai Drilling, are currently under CNPC’s engineering and technology division, which had total assets worth 172.3 billion yuan ($26.10 billion) and employed 180,000 staff as of the end of 2016, Caixin said.

The report did not give a timeline for the stock offering nor specify where CNPC is looking to list the service business.

A CNPC spokesman did not immediately comment.

The company in September last year sold $11 billion worth of financial assets to a listed unit which was renamed CNPC Capital Co Ltd, and early this year listed its construction and engineering business.

CNPC had also planned to list the oilfield service operations, but has failed to come up with a firm strategy due to a weak global oil market.

$1 = 6.6025 Chinese yuan Reporting by Chen Aizhu; Editing by Manolo Serapio Jr.

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