PetroChina Still Supports Kunlun’s Gas Business, Mao Says

PetroChina Co., the parent of Kunlun Energy Co., said it continues to support the natural-gas business of its Hong Kong-listed subsidiary.

Kunlun is one of PetroChina’s major platforms for natural gas, Mao Zefeng, the Beijing-based spokesman of PetroChina, said by phone today. PetroChina’s plan to inject gas assets into its subsidiary is proceeding “smoothly,” Mao said.

Shares of Kunlun fell 5.8 percent today, the most since Feb. 8, 2010, on market speculation China’s biggest energy company is no longer supporting Kunlun in its gas business. The stock closed at HK$12.72. PetroChina rose 1.5 percent to HK$10.88.

Kunlun’s net income almost doubled to HK$2.42 billion ($310 million) in 2010. The company’s gas business contributed HK$372 million to its profit, up 52 percent from a year earlier.

The company formerly known as CNPC Hong Kong Ltd. is the operator and developer of nine oilfields in China, Kazakhstan, Thailand, Peru, Oman, Indonesia and Azerbaijan. Gas has become “the major growing business of the company in the future,” Kunlun said in its earnings statement in March.

To contact the reporter on this story: Ying Wang in Beijing at ywang30@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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