Connect with us

General news

China hires Morgan Stanley, Goldman Sachs to advise on pipeline asset transfers – sources

Published

on

China hires Morgan Stanley, Goldman Sachs to advise on pipeline asset transfers – sources


Top Chinese energy firms have mandated investment banks, Morgan Stanley and Goldman Sachs, to act as advisors for multi-billion dollar deals transferring key oil and gas pipeline assets into a national energy infrastructure giant, four sources said.

Overseen by a government vice premier, underlining the project’s importance for Beijing, Beijing aims to complete the asset transfers and start operation of the new entity – valued by industry analysts at more than $40 billion – by the end of September, oil industry officials said.

“The timetable is a moving target but the goal was to complete the (asset) merger by end of July,’’ one person with direct knowledge of the matter told Reuters.

The mandates come after China announced, in late 2019, that it would establish an entity known as National Oil and Gas Pipeline Company by combining pipelines, storage facilities and natural gas receiving terminals operated by China National Petroleum Corp (CNPC), China Petrochemical Corp (Sinopec Group) and China National Offshore Oil Company (CNOOC).

The new entity – also known as PipeChina – was conceived by Beijing as a means to provide oil and gas producers with neutral access to energy infrastructure.

This will, in so doing, boost non-state investment in exploration of oil and gas.

Morgan Stanley has been picked to advise Sinopec, according to two sources with direct knowledge of the matter.

Two separate sources said Goldman Sachs was selected for CNPC for the asset transfer.

It was not immediately clear if CNOOC has appointed an international advisor.

For the new pipeline group itself, China International Capital Corporation (CICC), has been appointed as advisor, according to three separate sources.

All of the people interviewed by Reuters requested anonymity because the matter was not public.

PetroChina, Sinopec and CNOOC did not immediately comment.

On the banks side, Morgan Stanley declined to comment, while Goldman and CICC did not immediately comment.

According to some industry insiders, the transfer of some of the assets, such as the Shaanxi-Beijing gas trunk line project and natural gas receiving terminals that involve joint venture partners and minority stakeholders, may take longer to complete.

Edited By: Emmanuel Okara/Abdulfatah Babatunde (NAN)

Nnn: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

332 evacuees arrive Nigeria from London – NiDCOM Lewandowski dazzles as Bayern crush Chelsea to reach last eight Messi helps Barcelona sink Napoli to reach last 8 COVID-19: Lagos discharges 27 Nigerians, 5 foreigners Amosun pays tributes to late Kashamu Buhari mourns Kano businessman, Shehu Rabi’u Abiodun, Obasanjo mourn Kashamu Delta PDP returns Esiso as state chairman  Senate President Lawan sponsors wedding for 300 less-privileged, orphans in Yobe  Niger Govt. seeks establishment of Naval base to tackle banditry Makinde mourns PDP chieftain 2023: We can’t be distracted, political gladiators must exercise restraint -Okowa Nasarawa Assembly to appeal judgement nullifying former SSG’s indictment INEC inaugurates election result viewing portal New Nasarawa NMA Chairman pledges to eliminate quackery BUK Council approves appointment of Abbas as new VC A’Ibom govt discharges 26 COVID-19 patients from isolation centre Ex-minister Babatope, says shattered by Kashamu’s death Buhari mourns ex-Federal Commissioner, Olumide NEPZA key to national economic recovery – MD Osinbajo visits Ajimobi’s widow, pays tributes to late governor LAWMA arrests 13 cart pushers for environmental laws violation Nasarawa Assembly accuses LG Chairman of insubordination Ize-Iyamu: Sack your governors, senators facing corruption charges, Presidency tells PDP Congress: Abia PDP elects new executive 2023: I will not choose my successor- Gov Umahi declares Climate change: Group tasks communities, schools on tree planting Exam malpractice: COVID-19 will check ‘giraffing’ among students — Umahi PDP Congress: Nnamani, others return unopposed in Enugu  Insurgency: Ndume solicits community, political leaders support for military Killers of village head, Immigration officer arrested in Nasarawa – Gov. Sule Don’t bottle-feed your children, practice exclusive breastfeeding, Abia Govt official tells mothers Mobile Police training school will enhance security in Nasarawa- Gov. Sule Edo 2020: APC admonishes supporters against violence COVID-19: Kwara receives N100m grant from W/Bank FG begins feasibility study for Brass Shipyard project Judicial system integrity pivotal to all spheres of society -Osinbajo INEC appoints new REC, Administrative Secretary for Bayelsa Katsina State  Govt urges communities to provide intelligence information on banditry, criminal activities Human rights activist calls for action to stop killings in Southern Kaduna Expert urges shipowners to negotiate with AMCON to forestall foreclosure FG spends N14bn on CCT, school feeding in Jigawa within 29 months PDP supporters in Dogara’s hometown defect to APC, say former Speaker, their ‘political godfather’ Rotary Club plant trees against climate change impact in Abuja NiDCOM chief mourns basketball player, Michael Ojo Beware of scammers, Ekiti varsity cautions admission seekers Senate President sponsors marriage of 100 less-privileged spinsters in Yobe, 200 more to benefit Edo 2020: Oba of Benin calls for peaceful campaigns, election NAF commissions 114 medics, as President Buhari demands absolute loyalty to Nigeria  NNPC, partners resolve OML 130 dispute