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CNOOC to set up venture to make pipilines
(Shenzhen Daily-Agencies)
Updated: 2006-02-10 13:37
CNOOC Ltd. and a domestic private firm will set up a joint venture company to
make pipelines, marking the oil producer’s first foray into the petroleum
pipeline manufacturing business, Shanghai-based Oriental Morning Post reported
Thursday.
The joint venture, which will have annual pipeline output capacity of 300,000
metric tons, will help to meet CNOOC’s rising demand for pipelines following
acquisitions of overseas oil and gas assets, said the paper.
CNOOC is China’s largest offshore oil producer by output.
The joint venture between CNOOC’s subsidiary CNOOC Base Co. Ltd. and
Zhejiang-based Jinzhou Petroleum & Gas Pipeline Co. Ltd. is expected to
involve a total investment of 9.9 billion yuan (US$1.2 billion), with 5 billion
yuan coming from CNOOC and 4.9 billion yuan from Jinzhou.
Before the official establishment of the joint venture company, CNOOC and
Jinzhou had jointly produced and exported 2,500 tons of pipelines to Myanmar,
the Oriental Morning Post said.
CNOOC also intends to set up a pipeline research and development center under
the joint venture company.
Jinzhou Group, the parent of Jinzhou Petroleum & Gas Pipeline Co. Ltd.,
is one of China’s largest pipeline producers. It was founded in 1982 with assets
totaling 1.2 billion yuan.
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