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Mainland bourse in CNOOC's sights

By Wang Yu (China Daily)
Updated: 2007-03-06 09:18

Overseas-listed arms of China's top offshore oil producer are busy developing mainland A-share listing plans to bolster their business expansion, according to the firm's executives.

CNOOC Ltd, the Hong Kong-listed branch of China National Offshore Oil Corp (CNOOC), is in close contact with the mainland's stock watchdog for an A-share listing plan, Chairman Fu Chengyu said in Beijing yesterday.

Fu added that another two units of the company, China Oilfield Services Ltd and China BlueChemical Ltd, are also preparing similar mainland share sales.

Legal issues have persisted as a concern during CNOOC's discussions with the China Securities Regulatory Commission about CNOOC Ltd's possible A-share listing, Fu said. But sources from the offshore oil company said the planned share sales with the other two listed firms under CNOOC are only a matter of time and internal planning.

"As far as I know, listing plans are going smoothly for China Oilfield Services and China BlueChemical. As far as CNOOC Ltd is concerned, its A-share sales plan might depend on the extent of the openness of China's stock markets," Liu Junshan, a spokesman with Beijing-based CNOOC, said.

Liu Gu, an oil analyst with Shanghai-based Guotai Jun'an Securities Co, said that it is natural for all three listed arms of CNOOC to seek mainland listing as they seek more money from the stock market.

"CNOOC Ltd needs greater financial support to expand in oil and gas exploration and production. China Oilfield Services requires more investment to boost its capacity, and China BlueChemical needs more funding in the face of an industrial consolidation to take place in about two years.

"That is why all of the three listed company are enthusiastic about a mainland listing," Liu said.

The development of China's stock market provides the impetus for overseas-listed Chinese firms to return to the mainland to seek further funding. On the other side of the coin, the stock analysts said that Chinese firms listed overseas can boost the growth of mainland stock markets.

But Hong Kong-registered CNOOC Ltd is encountering legal hurdles along the road to the mainland A-share market.

However, Li points out, national policy absolutely encourages overseas-listed companies' return to A-share markets.