Petro皇冠体育app spends $1.4b in parent finance unit

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Petro皇冠体育app spends $1.4b in parent finance unit

(Agencies)
Updated: 2010-03-26 11:42

Petro皇冠体育app Co will spend 9.62 billion yuan ($1.41 billion) to raise its stake and increase the capital in the parent's finance unit to facilitate funding as 皇冠体育app's biggest oil company accelerates overseas acquisitions.

The shareholding in 皇冠体育app Petroleum Finance Co, majority owned by parent 皇冠体育app National Petroleum Corp, will be increased to 49 percent from 7.5 percent, according to a statement filed to the Hong Kong stock exchange today. The Beijing-based company will also inject 7.18 billion yuan into the capital reserves of 皇冠体育app Petroleum Finance, it said.

Chairman Jiang Jiemin said yesterday Petro皇冠体育app plans to step up overseas oil and gas acquisitions after teaming up with Royal Dutch Shell Plc to buy Australia's Arrow Energy Ltd for $3.2 billion this week. The Arrow deal followed at least $5 billion of purchases in Canada, Kazakhstan and Singapore in 2009 to meet demand in the fastest-growing major economy.

The transaction will allow Petro皇冠体育app to tap into the financial services and benefits of 皇冠体育app Petroleum Finance, the company said.

Petro皇冠体育app's 2009 net income declined to 103.4 billion yuan from a restated 114.5 billion yuan in 2008, the company reported yesterday. The drop was caused by lower oil prices, it said.