Just now, China's oil industry has ushered in a landmark move!

On the evening of July 23, PetroChina and Sinopec both announced that they planned to sell their oil and gas pipelines and other related assets to the national pipeline network company. So far, the national pipeline network company began to transfer the infrastructure assets related to the three barrel oil pipeline.

According to the national enterprise credit information publicity system, the state pipeline network company was registered and established on December 6, 2019, with a registered capital of 20 billion. Originally, the company had only the sole shareholder of the State Council.

Now, with the asset transfer transaction and related investors' contribution, the registered capital of national pipeline network company will be planned to be RMB 500 billion.

Among them, PetroChina invested 149.5 billion yuan, accounting for 29.9%, which is the largest shareholder of the state pipeline network company; Sinopec and Sinopec natural gas company respectively hold 9.42% and 4.58% shares of the state pipeline network company, accounting for 14% of the total shares; CNOOC gas power group holds 2.9% of the shares.

Shareholder composition of national pipeline network company

Among the above-mentioned new investors, except for three barrels of oil in the form of natural gas pipeline, LNG terminal and other oil and gas storage and transportation assets replacement, the other new investors are all in cash.

01

Pipeline network assets to be transferred by PetroChina

On July 23, 2020, CNPC and state pipeline network company signed 10 sub agreements, such as framework agreement, equity acquisition agreement on PetroChina Pipeline Co., Ltd., and production and operation agreement, etc.

According to the agreement, PetroChina plans to inject its main oil and gas pipelines, some gas storages and LNG terminals and other related assets into the national pipeline network company. The injection methods are divided into two categories: investment and sale.

The subject matter of the transaction involves the equity of 12 joint venture companies held by PetroChina and 8 independent accounting branches directly under CNPC, as well as the initial oil and gas.

Its eight independent accounting branches include: pipeline branch, southwest pipeline branch, west east gas pipeline branch, western pipeline branch, pipeline construction project management department, Beijing oil and gas control center, Northwest Sales Branch Nanning oil depot, and Shenzhen LNG project management department.

It is worth mentioning that the scope of this transaction does not include the pipeline assets of Kunlun Energy Co., Ltd. Kunlun energy is currently negotiating with the state pipeline network company on pipeline asset transactions, and the two sides have not reached a final agreement.

According to the audit report issued by PetroChina on December 23, the assets related to the construction and operation of oil and gas pipelines held and to be transferred by PetroChina totaled 378 billion yuan based on December 31, 2019.

02

Pipeline network assets to be transferred by SINOPEC

On July 23, 2020, Sinopec and the state pipeline network company signed a number of agreements, such as the agreement on purchasing assets by issuing additional equity, the agreement on purchasing assets by issuing additional equity and paying cash, and the agreement on purchasing assets with cash, etc., and planned to transfer the relevant oil and gas pipeline assets to the national pipeline network company.

According to the agreement, Sinopec transferred the equity of its natural gas pipeline and crude oil pipeline related companies to the state pipeline network company at the price of 47.113 billion yuan, so as to obtain the additional registered capital of 47.113 billion yuan issued by the state pipeline network company;

Sinopec natural gas company, a wholly-owned subsidiary of Sinopec, transferred the equity of its natural gas pipeline related companies to the national pipeline network company at a price of 41.509 billion yuan, so as to obtain the additional registered capital of 22.887 billion yuan issued by the state pipeline network company and the cash paid by the company of 18.621 billion yuan;

Guande company, the holding subsidiary, transferred 100% equity of Sinopec Yuji company to the national pipeline network company at a price of 3.22 billion yuan to obtain the cash consideration paid by the state pipeline network company;

The sales company of the holding subsidiary transferred its oil product pipeline assets to the state pipeline network company at a price of 30.813 billion yuan to obtain the cash consideration paid by the national pipeline network company.