China Petrochemical Corp, known as Sinopec Group, has confirmed it will sell its oil machinery business.
Asia’s biggest refiner has struck a deal with drilling equipment maker Kingdream. The firm is planning a private placement to raise funds for the purchase. Details of the final price tag have yet to be released.
Sinopec Group aims to evolve into a shareholding company and let professionally-run, listed units handle businesses such as oil and gas exploration, engineering and oilfield services, chairman Fu Chengyu said in March.
Sinopec Group owns 67.5% of Kingdream, which was suspended from trading on May 28.
The move is seen to be driven by the Chinese government’s push to restructure state-controlled companies to allow markets a greater role in resource allocation.
Sinopec Group is at the forefront of the drive, offering a 30% stake in the fuel-retailing business of its listed unit China Petroleum & Chemical Corp. to private investors.
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