Biz Scene: Grapevine

Acquisition talks

Negotiations are ongoing about a package acquisition of Chinese private oil enterprises by international energy giants such as Total, BP and SK, according to an industry insider.

The negotiations involve about 500 filling stations and other oil assets owned by a dozen private Chinese oil firms across the country. The total asset value can reach 10 million yuan, according to Zhao Youshan, director of the Petroleum Distribution Committee of the China General Chamber of Commerce.

The National Development and Reform Commission is studying a proposal to allocate 5 million tons of oil products annually to qualified private oil enterprises to let them survive in a market dominated by State-owned giants such as PetroChina and Sinopec, Zhao said.

(China Daily 09/26/2007 page15)