PetroChina to sell $2.4 bln in pipelines

China

BEIJING, November 26, 2015 – PetroChina will sell off gas pipeline assets valued at around CNY 15.5 billion ($2.4 billion), the company said on Wednesday.

The state-run oil major will divest 50 percent of its stake in its Trans-Asia Gas Pipeline Company subsidiary, according to a statement filed with the Shanghai Stock Exchange.

The move appears to be in response to depressed oil prices, which are prompting companies to look for ways to strengthen their finances.

In the third quarter of 2015, PetroChina’s profits fell more than 80 percent due to the price slump, coupled with a slowdown in the Chinese manufacturing sector.

The divestment may be the first in a series of reforms observers say are long-coming among China’s state oil and gas companies as they are forced to restructure to remain economically viable.