First private firm granted oil import license
September 1, 2014 Category Petrochemicals, Weekly
The private firm Xinjiang Guanghui Petroleum Co was granted a crude oil import license of 200,000 metric tons of crude oil for 2014, becoming the first private company to obtain such a license. Five state-owned companies-PetroChina, Sinopec, CNOOC, Sinochem and Zhuhai Zhenrong-have no limits on crude imports; 22 other companies with import licenses, are given rights to import crude via a quota system. In 2013, China imported 282 million tons of crude, with the second group accounting for only 29.1 million tons, its maximum quota. The government has recently made moves to be more open to private investors as part of the country’s energy industry reform. Xinjiang Guanghui Petroleum has acquired a 49% stake in Kazakhstan-based Tarbagatay Munay in 2009, thus gaining indirectly a 49% stake in the Zaysan oilfield owned by TBM. The Zaysan oilfield is expected to have an annual production capacity of 500 million to 600 million cubic meters of natural gas and about 1 million tons of thick oil, according to ICIS C1 Energy, a Shanghai-based energy information consultancy. Xinjiang Guanghui Petroleum signed an agreement in 2012 with Kazakhstan to acquire another oilfield with expected crude reserves of 210 million tons. Li Li, Research and Strategy Director at ICIS C1 Energy, said the oil import license can bring approximately CNY1 billion annually in sales revenue to Xinjiang Guanghui Petroleum, the China Daily reports.
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