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Chinanews, Beijing, Sept 4 – Total Group, the world's fourth largest oil and gas company, has recently finished the purchasing deals to buy 20 private petrol stations in China's Liaoning Province.
The information was released by Zhou Youshan, chairman of the China General Chamber1 of Commerce Oil Distribution Committee, when he attended the 2007 China Oil Distribution Industry Development Forum2. He said that the French company had been running through related procedures for buying three private Chinese wholesale3 oil companies. “Chinese petrol stations have no oil resources and they have a hard time sustaining their business,” Zhao said. At present, many privately-run petrol stations have no product oil for sale, he said. A reporter from Beijing Business Today tried to verify the news with a private oil company in Liaoning. However, the reporter was not able to get a definite answer. The person in charge at the private oil company only told him that the French company had bought some Chinese private petrol stations and the number was far more than 20. However, he refused to disclose detailed4 information. This reporter later learned that apart from Taotal, many domestic oil companies from southern Fujian Province have traveled north to buy petrol stations in Liaoning. Last June, there was hearsay5 that 80 Chinese private oil companies, since they had no oil resources, were struggling for business and in the end, the managers of these oil companies wanted to sell their enterprises to some foreign oil giants. The foreign oil giants included Shell, BP and Mobile. Last August, the China General Chamber of Commerce Oil Distribution Committee told this reporter that the state had changed its policy on private oil enterprises and related purchasing deals had been cancelled. “The fact that Chinese private companies were purchased by foreign enterprises was the result of development in China's oil distribution market,” said Han Xiaoping, CIO of China5e.com. He predicts that in future, more and more domestic private oil companies will be purchased by Chinese oil giants like PetroChina and Sinopec, as well as large foreign oil companies.
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