CNPC backdoor listing estimated at value of $3.7b

China National Petroleum Corp, the country's biggest oil and gas producer, is a step closer to completing a backdoor listing of its engineering assets after its Shanghai-listed target company approved the plan.

Xinjiang Dushanzi Tianli High & New Tech Co, based in northwestern China's Xinjiang Uygur autonomous region, agreed to buy seven engineering companies from CNPC at total estimated value of 25 billion yuan ($3.7 billion), it said in a Shanghai exchange filing on Sunday. Xinjiang Dushanzi will sell 19 billion yuan worth of new shares to CNPC and will pay 6 billion yuan in cash to finance the purchase, it said in the statement.

CNPC Chairman Wang Yilin said in February the company aims to spin off its oilfield services business as it seeks to become more efficient.