China National Petroleum Corp will adopt a market-oriented and mixed-ownership reform as it seeks to enhance its efficiency and profit by upgrading its management system, the state-owned giant said on its website yesterday.
Under its guidelines, the company needs to reallocate operational resources to tackle problems in management and its industrial chain, as well as enhance business transparency.
Wang Yilin, chairman of CNPC, said it will establish new investment, budget and evaluation systems which emphasize efficiency and profit.
Earlier this month, CNPC was said to have started trimming its administrative staff by 20 percent to streamline administration while allowing subsidiaries to make independent management decisions, according to Jiemian.com, a Chinese financial news portal.
"Such actions echoed Chinese authorities' efforts on SOE reforms, which aim to absorb refreshing ideas from a diversified range of shareholders and shift management models to a market-oriented one," said Gordon Kwan, head of oil and gas research for Asia at Nomura Securities.
The Central Economic Work Conference, which ended last Friday, suggested mixed-ownership reform should be adopted by key industries including gas, oil, electricity, railway, civil aviation and telecommunications to help them enhance efficiency and improve management.