In a move to make its subsidiary, Sinopec International Petroleum Exploration and Production Corporation (hereinafter referred to as SIPC) more market-oriented, Sinopec Group has recently brought in two strategic investors, China Chengtong Holdings Group and China Reform Holdings Corporation, to SIPC, resulting in a 4:3:3 ownership structure. The change is expected to boost the company’s market and international competitiveness and lead to healthier and more sustainable development.
Since inception in 2001, SIPC has gained good experiences in managing and operating oil and gas assets. The introduction of strategic investors will help optimize its capital structure, further improve corporate governance and operating model, optimize portfolio and business structure, and lower operating and financing cost.
For the sake of business continuity, the shareholders agreed that Sinopec Group should continue to be responsible for SIPC’s operation, including guiding the company in strategic and operational planning, and delivering HSE targets. SIPC will continue to honor its commitments and agreements made prior to the change.