CNOOC Eyes Expanded Retail Gas Market

Source: UPI

China National Offshore Oil Corp. plans to expand its retail gas market.

CNOOC plans to buy another block of retail gas stations in Southeast China's Guangdong province to compete with French company Total, which recently acquired gas stations in Liaoning province.

Talks are in progress with private gas-station operators in South China, and CNOOC said Guangdong is just the beginning.

Industry experts called the move aggressive, saying the aim is to compete directly with China Petrochemical Corp. and China National Petroleum Corp. in the downstream oil market.

Since early 2006 the two oil giants have been competing for private gas stations around the country, and since then, Total, the fourth-largest oil and gas producer worldwide, has joined the fray.

As the oil demand intensifies, Chinese oil and gas producers are seeking ways and means to increase output and cut down export, and CNOOC is also building up its own gas stations as well as buying them.

Editor: Ronald Li