On September 18th, Tong Yahui, the chairman of Zheneng Group, the largest state-owned enterprise in Zhejiang, announced that Zheneng Group and Zhejiang Petrochemical invested 11 billion RMB to set up Zhejiang Provincial Petroleum Co., Ltd. (Zhejiang Petroleum), of which Zhejiang Energy Holding Co., Ltd. holds 60% and Zhejiang Petrochemical holds 40%. According to a quotation from Zhejiang Daily, the high-level officials of Zheneng have once said: "The Zhejiang government does not have its own oil company, which is not assured." The formation of Zhejiang Petroleum is also a result of the vigorous promotion by the Zhejiang provincial government. Just before the founding of Zhejiang Petroleum, another provincial-level local energy giant Shandong Petrochemical Energy Group Company was established "quietly." What can be seen is that , like the Zhejiang government who has the same idea that "without their own oil companies, they do not show the trust" . Such local governments are not few. It is such unfriendly operation to make "three barrel oil" feel enough "blowing" concerns. This is not alarmist. With the strong support of local governments, the provincial oil companies will spring up like mushrooms.
As we all know, there are disadvantages in China's oil and gas industry. Thus , China's oil industry has always been exploring for the progress. With the reform of China's oil and gas fields entering the "deep-water area," the calling for the establishment of local oil companies is getting louder and louder. The purpose of the reform of central SOEs is to liberate and develop social productive forces, and realize the modernization of our country to enrich the Chinese people and rejuvenate the great Chinese nation. The mixed system is known as a signal lamp that guides the reform of central SOEs. The Central Economic Work Conference emphasized that the mixed ownership reform is an important breakthrough in the reform of state-owned enterprises and explicitly requires that substantive steps should be taken in areas such as electricity, oil and gas, railways and so on. The key to successful mixed ownership is the ability to introduce non-public capital. It is becoming a tendency for the oil and gas industry to introduce the "private capital" in oil and gas reform.