China Oil Industry Reformation: Communist Party Shuffles Company Heads
Published By : 05 May 2015 | Published By : QYRESEARCH
The Communist Party in China has substituted the heads of three of its largest energy firms, according to statements issued by the companies separately, as speculation continues to rise over the reformation of the country’s oil industry.
The Communist Party in China has control of the management of the nation’s leading state-owned oil companies and has the power to shuffle the organization heads at any point of time.
Leading oil giant China National Petroleum Corp (CNPC) in a statement said on Monday evening that the company chairman Zhou Jiping had resigned owing to his age and his position will be replaced by Wang Yilin. Wang Yilin was earlier heading China National Offshore Oil Corporation (CNOOC), the offshore oil company.
CNOOC is well known around the globe for its multi-billion dollar acquisition of Nexen, a Canada based oil and gas company. CNOOC said late on Monday that the president of the company had been promoted in order to replace Wang Yilin’s post.
China Petroleum and Chemical Corporation (Sinopec) announced that Fu Chengyu, its chairman, had also been replaced owing to his age. Wang Yupu of the Chinese Academy of Engineering will be taking over for Fu Chengyu.
The state media in China have stated that the government is in talks of structural reformation of the energy sector this year. Reports have indicated that the changes could also include a pivotal merger between Sinopec and CNPC. However, when approached, both the companies have denied any speculation of an impending merger.
Earlier this month the state media also said that China is contemplating merging some of its largest and most successful state-owned companies. The existing 112 enterprises will be merged to bring into creation around 40 national leaders.