(Refiles to correct spelling of company name in sixth
paragraph, fix typo in seventh)
By Chen Aizhu
BEIJING, Sept 6 China National Petroleum Corp
(CNPC), the country's largest state energy group, will sell $11
billion worth of financial assets to a listed unit as part of
the state giant's reform plan to restructure its non-core
Under Beijing's broad reform agenda to make its state-owned
enterprises more efficient and competitive, CNPC has
said it will restructure non-core departments, such as oilfield
services, engineering and financial operations, and list them on
Jinan Diesel Engine, a unit under CNPC, said
late on Monday that it plans to buy certain financial assets in
CNPC for 75.5 billion yuan ($11.3 billion) via cash, asset swaps
and a share issue.
The unit, listed on the Shenzhen exchange, said it aims to
raise up to 19 billion yuan in a private placement of shares to
fund the acquisition.
CNPC is also the parent of PetroChina <0857,HK>, Asia's
largest oil and gas producer.
"It's part of the company's stated restructuring of non-core
units. CNPC is using the Jinan firm as the shell for listing its
financial assets," said a Hong Kong-based oil and gas analyst,
who declined to be named due to company policy.
The assets CNPC is selling to the listed unit include the
state group's holdings in CNPC Finance, Bank of Kunlun, Kunlun
Financial Leasing, Bank of China International and others,
according to a filing by Jinan Diesel Engine.
In a similar move, Sinopec Group in 2014 transferred its
oilfield service business to listed unit Sinopec Yizheng
Chemical Fibre Co Ltd.
Earlier expectations had been for a radical "big bang"
shake-up of China's state energy firms, but Beijing has instead
taken smaller steps such as pilot privatisation projects and
letting companies restructure assets internally.
($1 = 6.6813 Chinese yuan)
(Reporting by Chen Aizhu; Editing by Tom Hogue)