PetroChina (PTR) to Invest $3.3B in New Pipeline Joint Venture
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PetroChina Co. Ltd. (NYSE: PTR) is lower on the session following an earlier disclosure that it entered a new joint venture.
On 14 June 2013, the Company entered into the JV Contract with Taikang Asset and the Guolian Fund, pursuant to which the JV Company will be jointly established by the Company, Taikang Asset and the Guolian Fund. The Company will contribute the West Pipeline Assets as capital, which are worth RMB20 billion (about $3.3 billion) after valuation (which final valuation is subject to its filing by China National Petroleum Corporation with the authority concerned), and subscribe for registered capital in the JV Company amounting to RMB20 billion, representing 50% of the registered capital of the JV Company. Taikang Asset will contribute RMB36 billion in cash and subscribe for registered capital in the JV Company amounting to RMB12 billion, representing 30% of the registered capital of the JV Company, with the remaining attributable to the capital reserve. The Guolian Fund will contribute RMB24 billion in cash and subscribe for registered capital in the JV Company amounting to RMB8 billion, representing 20% of the registered capital of the JV Company, with the remaining attributable to the capital reserve.
Scope of business: construction of oil and natural gas pipelines and related technical consultancy; import and export of products and technologies; and technologies promotion services (subject to the scope finally authorised by the State Administration for Industry & Commerce of the PRC).
On 14 June 2013, the Company entered into the JV Contract with Taikang Asset and the Guolian Fund, pursuant to which the JV Company will be jointly established by the Company, Taikang Asset and the Guolian Fund. The Company will contribute the West Pipeline Assets as capital, which are worth RMB20 billion (about $3.3 billion) after valuation (which final valuation is subject to its filing by China National Petroleum Corporation with the authority concerned), and subscribe for registered capital in the JV Company amounting to RMB20 billion, representing 50% of the registered capital of the JV Company. Taikang Asset will contribute RMB36 billion in cash and subscribe for registered capital in the JV Company amounting to RMB12 billion, representing 30% of the registered capital of the JV Company, with the remaining attributable to the capital reserve. The Guolian Fund will contribute RMB24 billion in cash and subscribe for registered capital in the JV Company amounting to RMB8 billion, representing 20% of the registered capital of the JV Company, with the remaining attributable to the capital reserve.
Scope of business: construction of oil and natural gas pipelines and related technical consultancy; import and export of products and technologies; and technologies promotion services (subject to the scope finally authorised by the State Administration for Industry & Commerce of the PRC).
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