The reporter learned from Shanghai Xingcheng Petroleum Co., Ltd. yesterday that CNOOC has invested 388 million yuan to officially acquire 83.2% of the company’s shares. This marks a significant move for CNOOC, as it expands beyond its refinery operations in Huizhou and enters the oil terminal market, taking a major step toward integrating upstream (mining), midstream (refining), and downstream (marketing) activities.
Shanghai Star City Petroleum Co., Ltd., established in 1996, is currently the largest private oil company in Shanghai. It holds franchise rights for wholesale gasoline, diesel, heavy oil, and various lubricants, sourcing most of its products from the Shanghai Refinery. Over the past few years, the company has invested over 50 million yuan to build 20 gas stations, an oil depot, and service points across several towns including Jiangqiao, Anting, Malu, Fangtai, Jiaxi, and areas in Putuo District such as Zhennan Road and Jiaotong Road. Its locations near the Jiangqiao tollgate on the Shanghai-Jiajia Expressway and the Shanghai-Nanjing Expressway provide convenient access for passing vehicles and local businesses.
CNOOC Limited recently finalized a framework agreement with Shanghai Star City, and has already transferred the initial payment into the company’s account. If all goes smoothly, Shanghai Star City is expected to rebrand by March, with the "Star City Oil" logo at its 20 gas stations being replaced with the blue CNOOC emblem.
CNOOC has taken this acquisition very seriously, sending key personnel—including the general manager, deputy managers, and financial staff—from its Beijing headquarters to Shanghai. Meanwhile, CNOOC's large-scale Huizhou refinery project, which can process 12 million tons of crude oil annually, has recently started production. This acquisition is expected to complement the refinery's output, potentially enabling refined products from Huizhou to be delivered to Shanghai and distributed through a network of ten gas stations, forming a strategic marketing channel.
Shanghai Star City has a long history of selling equity, and in recent years, it has engaged with several major oil companies. Before CNOOC’s acquisition, CNPC and BP had shown interest, while Sinopec had also been in talks. However, in July last year, a severe domestic oil supply shortage led to Sinopec suspending its promised petroleum supplies, causing a stalemate in their collaboration. CNOOC’s purchase is seen as a potential game-changer, challenging the long-standing dominance of Sinopec and PetroChina in the Shanghai market.
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