Asia/Pacific News
Chinese Players Prepare for Oil Market Reform
Independent Chinese fuels companies are preparing for an expected opening of the country's oil and gas markets this year, Reuters reports.
Expectations of a more open market for the sector were raised in December when China approved the launch of a crude oil futures market in Shanghai.
One such firm, CEFC China Energy (CEFC) is said to be ramping up its crude oil storage facilities in China ahead of the anticipated lifting of certain restrictions on crude imports to the country.
According to the report, CEFC has hired senior trading executives from state oil businesses and is planning to operate a tank farm in China with capacity for 18 million barrels of crude oil.
There was also speculation that the company may be seeking to invest in oil production assets in Africa, as ownership of upstream assets is said to help boost access to government import quotas.
CEFC has only been awarded quotas to import around 3 million barrels of crude annually in recent years, but all shipments must fit into throughput and production plans set by state-run refiners.
In December, Brightoil Petroleum (Holdings) Ltd. said it would benefit from significant oil tax cuts announced by the Chinese government.
