Shaanxi Yanchang Petroleum (Group), China’s fourth-largest oil company by domestic assets, has scaled back a planned US$1 billion initial public offering due to disputes with the mainland’s number-one oil firm, China National Petroleum Corp (CNPC), the South China Morning Post reported. Shaanxi Yanchang and CNPC hold adjacent oil fields in Shaanxi province and have disagreed over how to proceed with their development. The two companies formed a joint venture last year to explore for oil in the province. Analysts noted that rising oil prices could have been a factor in the disagreements between the two sides. Yanchang is currently 51% owned by the Shaanxi provincial government and 44% owned by the municipal governments of Yan’an and Yulin, two cities in Shaanxi.
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