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Top Biz News

PetroChina spends $1.4b in parent finance unit

(Agencies)
Updated: 2010-03-26 11:42

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PetroChina Co will spend 9.62 billion yuan ($1.41 billion) to raise its stake and increase the capital in the parent's finance unit to facilitate funding as China's biggest oil company accelerates overseas acquisitions.

The shareholding in China Petroleum Finance Co, majority owned by parent China National Petroleum Corp, will be increased to 49 percent from 7.5 percent, according to a statement filed to the Hong Kong stock exchange today. The Beijing-based company will also inject 7.18 billion yuan into the capital reserves of China Petroleum Finance, it said.

Chairman Jiang Jiemin said yesterday PetroChina plans to step up overseas oil and gas acquisitions after teaming up with Royal Dutch Shell Plc to buy Australia's Arrow Energy Ltd for $3.2 billion this week. The Arrow deal followed at least $5 billion of purchases in Canada, Kazakhstan and Singapore in 2009 to meet demand in the fastest-growing major economy.

The transaction will allow PetroChina to tap into the financial services and benefits of China Petroleum Finance, the company said.

PetroChina's 2009 net income declined to 103.4 billion yuan from a restated 114.5 billion yuan in 2008, the company reported yesterday. The drop was caused by lower oil prices, it said.