China Considering Merging State Oil Firms -WSJ

China is considering combining its huge state-controlled oil companies to better compete with the world's biggest producers, the Wall Street Journal reported.

 

Companies being considered for mergers include China's largest oil producer, China National Petroleum Corp, and its main domestic rival and refiner, China Petrochemical Corp or Sinopec, the Journal said, citing officials with knowledge of a government study.

 

Other options include merging China National Offshore Oil Corp, or CNOOC, and Sinochem Group, the report said. (http://on.wsj.com/1DC3Gfv)

 

Oil companies have come under pressure due to a near-halving in oil prices since June.

 

China said late last year that it would merge the country's top two state-owned railcar makers to compete with Germany's Siemens AG and Canada's Bombardier Inc.