China breaks up state pipeline company
China
BEIJING, September 24, 2015 – The Chinese government has announced plans to break up the state monopoly on oil and gas pipelines.
Via the state-backed news agency China Securities Journal, China will take rights of operatorship from the China National Offshore Oil Corporation, China National Petroleum Corporation and refiner Sinopec. The state will form a new and as of yet unnamed agency to invite and regulate foreign investment into China’s oil infrastructure.
The China Securities Journal said the government was still deciding when and how quickly to implement the decision.
The news follows a massive graft scandal involving Sinopec’s former CEO Wang Tianpu, as part of President Xi Jinping’s three-year plan to clean up state corruption and open the market. Bringing in foreign involvement is expected to make the licensing process more transparent.
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