CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Cnooc, General Electric plan PE fund

05-14-2010 15:09 BJT

BEIJING, May 14 -- China National Offshore Oil Corp (Cnooc) and global conglomerate General Electric Co (GE) are considering setting up a 3 billion yuan private equity (PE) fund, a source familiar with the matter said on Thursday.

Both companies will hold identical stakes of 50 percent each in the fund. The fund will be used for investments in several sectors including domestic and global energy projects, the source said on condition of anonymity.

Analysts said the move would boost Cnooc's asset management and investment capabilities. It also lends credence to the offshore oil explorer's efforts to develop itself into an integrated energy company.

China's two leading oil companies, PetroChina and Sinopec, have already got strong financial businesses. Hence it is only natural for Cnooc also to consider a financial sector extension, said Liu Gu, an analyst with Guotai Jun'an Securities in Shenzhen.

Cooperation with GE would help Cnooc improve its risk management capabilities, said Lin Boqiang, a professor at Xiamen University.

"Cnooc will benefit from GE's professionalism and rich experience in managing assets," he said.

Analysts said Cnooc would gain from GE's strong global network and have better access to overseas investment opportunities.

Cnooc President Fu Chengyu told reporters earlier that the company was in talks with potential partners for investment opportunities, but said it would opt for a cautious approach as it also needs to ensure good returns for investors.


Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program