PetroChina has entered into a joint-venture (JV) Contract with Taikang Asset and the Guolian Fund. The joint venture will focus on the construction of oil and natural gas pipelines and related technical consultancy; on import and export of products and technologies; and technologies promotion services (subject to the scope finally authorised by the State Administration for Industry & Commerce of the PRC).
PetroChina will contribute the West Pipeline Assets as capital, which are worth Cyu 20bn after valuation (US$3.3bn), and subscribe for registered capital in the JV Company amounting to Cyu 20bn (US$3.3bn) representing 50% of the registered capital of the JV Company. Taikang Asset will contribute US$5.9bn in cash and subscribe for registered capital in the JV Company amounting to US$2bn (30% of the JV), while the Guolian Fund will contribute US$3.9bn in cash and subscribe for registered capital in the JV Company amounting to US$1.3bn (20%).