PetroChina Plans To Integrate Pipeline Operations Into PetroChina Pipelines

(RTTNews) - PetroChina Co. Ltd. (PTR) announced that it has proposed to use its wholly-owned subsidiary, PetroChina Pipelines, as a platform to integrate various pipeline operations. PetroChina noted that a single platform will be established for the management, operation, investment and financing of the pipeline assets to further improve management efficiency and save operational costs.

On 24 December 2015, PetroChina Pipelines, as the acquirer, has entered into a series of acquisition agreements with PetroChina and the other transferors for the equity interests of 13.19% equity interests in United Pipelines held by Taikang Assets, 1.67% and 9.6% equity interests in United Pipelines and Northwest United held by Guolian Fund respectively.

PetroChina stated that PetroChina Pipelines shall pay acquisition consideration in form of its equity interests to the sellers under the Equity Acquisition Agreement.

PetroChina, which holds 100% equity interests in Eastern Pipelines, 50% equity interests in United Pipelines and 52% equity interests in Northwest United, will have 72.26% of the enlarged share capital of PetroChina Pipelines after the transaction. PetroChina's controlling shareholder CNPC, whic holds 50% of the equity interests of GCLI, is one of the other transferors.

The total equity interests held by the other transferors in the target companies will account for 27.74% of the enlarged share capital of PetroChina Pipelines after the transaction. Specifically, Guolian Fund will own 5.33%, NCSSF will own 4.40%, Taikang Life will have 4.08%, Baosteel will have 3.52%, among others.

Following the completion of the transaction, the registered capital of PetroChina Pipelines shall be increased from RMB 50 million to RMB 80 billion.