PetroChina Company Ltd: China’s big leap forward
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PetroChina Company Ltd: China’s big leap forward

Deals of the year: Tech and telecoms illustrate the ups and downs of 2000

Issuer: PetroChina Company Ltd
Deal: privatization IPO
Amount: $2.9 billion
Date: April 7 2000
Co-ordinators: Goldman Sachs, CICC

Petrochina: showing
the country's

Restructuring China National Petroleum Corporation, one of the world’s largest state-owned oil companies, is China’s most ambitious privatization project to date. “China has not seen a restructuring on that scale before. CNPC was not only a company, it was an industry,” says Bin Guan, research analyst on oil and gas at CICC.

Before 1998 CNPC controlled China’s oil production and owned oil fields, drilling operations and refineries, interspersed with hospitals, schools and the occasional university. It employed a total of 1.5 million people.

With some of CNPC’s assets and 480,000 of their workforce, PetroChina was set up from scratch as an integrated oil company with focus on upstream business. PetroChina’s new operations then had to be brought in line with the way international oil companies function, namely as an integrated company with gas, oil products, petrochemicals and distribution divisions.

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