China's top offshore oil company CNOOC is confident that once
technical difficulties are overcome, it's possible for the red-chip
firm to float A shares this year.
"There're only certain particular technical obstacles, such as
foreign exchange management, to our initial public offering (IPO)
plan in the A-share market. They are not fundamental policy
difficulties.”
"Similar hurdles confront China Mobile. When these are settled,
our IPO plan will get the green light from the authorities this
year," CNOOC Chairman Fu Chengyu told China Daily.
Fan Fuchun, vice-chairman of the China Securities Regulatory
Commission (CSRC), said China Mobile may list in the A-share market
this year with an IPO, rather than Chinese depository receipts
(CDRs). If successful, China Mobile will become the first
overseas-incorporated company to list on the Shanghai bourse.
Fu hinted CNOOC is as important as China Mobile in terms of the
CSRC's agenda for red chips. "If China Mobile can float shares
within this year, we suppose we deserve the same privilege," Fu
said.
The arrival of red chips - mostly national conglomerates
incorporated and listed in Hong Kong - in mainland bourses is
expected to help regulate and perfect the A-share market as they
are used to stringent listing rules overseas and enjoy good profit
margins.
"Also, with more companies such as China Mobile and CNOOC coming
to Shanghai bourse, the proportion of quality and well-performing
firms will pick up," Fu added.
As China's leading offshore oil and gas producer, CNOOC is
working harder to maintain sustainable development to meet the
country's soaring energy demand.
Fu said his firm is to step up China's first offshore wind power
project in Bohai Bay area soon to boost renewable energy
development and maintain sustainable energy growth.
"Offshore wind power generation will be a core business for
CNOOC in the future. The segment holds great promise in China and
will reduce our reliance on fossil fuel. It will help our company
and our country maintain a sustainable development pattern," Fu
said.
The chairman said CNOOC is working with local wind turbine
engine makers to take the project to the trial phase as soon as
possible.
Fu said that besides renewable energy, in 15 years CNOOC is to
import 60 million tons of liquefied natural gas (LNG) every year,
equivalent to 80 million tons of oil.
Natural gas is also a clean fossil fuel.
"The plan to import more LNG will optimize the energy
consumption structure in coastal regions and help meet the
country's energy demand," Fu said.
(China Daily March 22, 2007)