Sinopec sets up oilfield service arm ahead of listing

BEIJING Fri Dec 28, 2012 3:28am EST

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BEIJING Dec 28 (Reuters) - China's Sinopec Group, the parent of Sinopec Corp, has set up a giant oilfield service arm to expand its global engineering and construction services for the upstream oil and gas business and which the state energy firm hopes to eventually list.

Sinopec Oilfield Service Corp, officially launched on Friday in Beijing, employs 140,000 people and has 76.6 billion yuan ($12.3 billion) worth of fixed assets with 2012 revenue estimated at 95 billion yuan ($15.2 billion), Sinopec Group said in a press release.

The new entity, consolidated from the service departments of eight subsidiary oilfields such as Shengli, Zhongyuan and Jianghan, is executing contracts overseas worth a total of $14.2 billion.

In September, Sinopec Group formed an engineering and construction company for its refining and petrochemical business called Sinopec Engineering (Group) Co Ltd, which state media reports said was expected to be listed in Hong Kong by 2014. Sinopec will eventually list both companies, but there is no timeline yet for the listings, a company official said.

(Reporting by Beijing newsroom and Chen Aizhu; Editing by Matt Driskill)

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