Saturday, May 23, 2015

FIVE POINTS- Philip Andrews-Speed on Reforming China's National Oil Companies

We bring you 5 salient points from a recent commentary made by Philip Andrews-Speed on the current direction for reform of the Chinese National Oil Companies: PetroChina, CNOOC and SINOPEC.
 
Philips Andrew-Speed is a specialist in International Energy Policy and Regulation.
1. Big bang or Small Steps; wholesale restructuring or incremental reforms? Far from predictable outcomes.

2. Genesis of restructuring was in 1998 when SINOPEC, PETROCHINA and CNOOC were restructured, commercialized and listed on international stock markets.

3. A culture of rent seeking, corruption, poor capital management and slowdown in improvements in commercial and technical performance exists on the Chinese home front.

4. Local Chinese companies, out of their lack of experience in gas exploration, could not

fill the void left by deliberate Government policy which opened up the local space to players other than the dominant Chinese NOCs (2012)

5. Routes to improved competitiveness: A spin-off of PetroChina and Sinopec Oil and Gas Pipelines Assets on the cards, sale of Oil Field Service and Manufacturing companies, relinquishment of oil and gas exploration assets?


Read the full commentary here:
http://www.andrewsspeed.com/reforming-chinas-national-oil-companies-big-bang-or-small-steps/

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