PetroChina to buy out oil exploration JV
26 August 2008
Hong Kong-listed PetroChina will assume full ownership of a 50-50 international oil and gas exploration joint venture it runs with its parent company, China National Petroleum Corp, the Wall Street Journal reported, citing a person familiar with the situation. The buyout is expected to be worth for US$11.8 billion. The joint venture, CNPC Exploration & Development (CNPC E&D), controls most of the group's overseas oil and natural gas fields. PetroChina had been expected to buy out CNPC E&D, though high oil prices have made the acquisition more expensive. Beijing has waived capital gains tax on the deal, which would have totaled US$2.7 billion, according to the newspaper's source. PetroChina's shares rose 3.1% to HK$9.94 (US$1.27) on Monday.