CNPC acts on market-oriented targets

Employees of China National Petroleum Corp check pipelines of a section of West-to-East natural gas pipelines in Yinchuan, the Ningxia Hui autonomous region. [Photo/Xinhua]

China's oil giant China National Petroleum Corp said on Wednesday that it has implemented guidelines on reforms for a market-oriented economy and mixed-ownership.

"The reforms toward a market-oriented economy will help the company improve its products, pricing mechanism and services. We will further establish a market and benefit-centered investment, budget and assessment system," said Wang Yilin, CNPC chairman.

"The guidelines will help prioritize capital and the business structure while ensuring the maintenance and appreciation of State-owned assets," he said.

A market-oriented economy is the direction of China's economic reform and will be a basic principle for the company, Wang said.

China has recently stressed the significance of deepening economic reforms and mixed ownership for State-owned enterprises, especially those in the fields of oil and natural gas and railways. This was emphasized during the recent Central Economic Work Conference, when Chinese leaders and senior officials gathered to map out priorities for 2017.

Mixed ownership is a significant breakthrough for the State-owned enterprises reform. The companies should take substantial steps through restructuring and reform, joint ventures and cooperative operations, according to the conference.

Despite some progress made by the company, there is a long way to go, said Wang.

The National Energy Administration has recently released guidelines for boosting the usage of natural gas, stressing that systemic reform in the gas sector should first take place in Shanghai, Jiangsu province and Hebei province.

China Petroleum & Chemical Corp, another oil giant in China usually known as Sinopec, has recently sold a 50 percent stake in its pipeline unit to domestic investors for 22.8 billion yuan ($3.28 billion), the first time the pipeline unit received an investment from another independent company. Stocks of CNPC rose by 3.93 percent to 7.93 yuan on Wednesday.