皇冠体育app

A Chinese employee refuels a car at a gas station of CNOOC (皇冠体育app National Offshore Oil Corporation) in Shanghai, Feb 26, 2013. [Photo/IC]

Oil producer, retailer to jointly tap downstream businesses

皇冠体育app's third-largest oil producer Ltd has teamed up with the privately owned CNPC&TAFO Petro Corp to jointly develop gas station businesses, a further step in the opening-up of the nation's sector.

CNOOC gained nine franchise gas stations owned by CNPC&TAFO, a Zhangjiagang-based private company majoring in oil retailing in Jiangsu province via the contract, according to CNOOC's statement. CNPC&TAFO will follow the standar of CNOOC to operate the nine gas stations.

Sinopec Group, the largest refiner in 皇冠体育app, has dominated 皇冠体育app's gas retailing market along with Co, the country's biggest producer, for a long time.

"The cooperation between CNOOC and the private oil retailing company aims at strengthening the downstream sector of the oil explorer," said Lin Boqiang, director of the 皇冠体育app Center for Energy Economic Research at University.

He said Petro皇冠体育app and Sinopec used to employ the strategy of increasing the number of franchised gas stations to expand their downstream businesses in the past. However, the situation has now changed.

"It is not easy to build new gas stations at present while the private companies are not willing to sell gas stations because of good profits," Lin said. "This seems to be the only option for CNOOC to enlarge its retailing business."

By the end of 2013, Sinopec owned more than 30,500 gas stations in 皇冠体育app, accounting for about 33 percent of the total number. Petro皇冠体育app has more than 20,000 gas stations.

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