BEIJING – The State Council and Central Committee of the Communist Party of China published a reform plan for the country’s oil and gas sector, seeking to inject more private capital into its state-owned energy companies, the official People’s Daily reported on Monday.
The reforms, which are part of the XIII Five-Year Plan (2016-2020), were launched on Sunday.
The plan emphasizes that the “market should play a decisive role in resource allocation and the government role should be better played in order to safeguard national energy security, boost productivity and meet people’s needs.”
The reform calls for allowing private shareholders to invest in hydrocarbon firms, a market that is currently dominated by the three state giants PetroChina, Sinopec and China National Offshore Oil Corp.
The three firms “have long been accused of monopolizing the oil and gas resources with redundant workers and low efficiency,” the Daily reported.
The plan also encourages non-state firms to invest in oil and gas storage companies, and encourages them to work independently with equipment and engineering companies related to this sector.
“The plan reaffirmed the leadership’s commitment to deepening the reform of state-owned oil and gas companies, encouraging eligible enterprises to diversify their shareholder base and introduce mixed-ownership reform,” the Daily added.