Speculation of restructuring in China's oil and gas industry

Talks have been held as Beijing faces increasing pressure to change the industry

Possibilities talked about range from accelerated divestments of non-core assets to full-scale mergers between the leading companies, CNPC, Sinopec, Cnooc and Sinochem. The talks, which are preliminary and continuing, come as Beijing faces increasing pressure to overhaul a vast state-run oil industry squeezed by falling energy prices. The government has also committed to reform state-owned companies as part of a broader economic restructuring and improve weak corporate governance. Still oil-industry officials and government advisers are pushing back against the merger talks, which have been met with scepticism from economists who believe China needs more competition to nurture growth and exp