Cosco Shipping Energy Transportation, the energy shipping unit of Cosco, has approved a proposal to transfer its shares in two shipping subsidiaries into Cosco PetroChina Shipping, a joint venture between Cosco and PetroChina.
According to the plan, Cosco will transfer 50% equity interest in Huayang Maritime and 50% equity interest in Huahai Petrol Transportation & Trading to Cosco PetroChina Shipping. PetroChina will also transfer its 50% equity interest in Huahai to the joint venture.
Following the transactions, Cosco and PetroChina will still hold 51% and 49% equity respectively in Cosco PetroChina Shipping.
Last year, Cosco also spent $62.6m on the acquisition of 51% equity in PetroChina Dalian Marine Shipping.
Cosco believes the collaboration with PetroChina will help it expand its presence in the domestic product oil shipping market.