China is reportedly considering merging its state-owned oil and gas companies in a bid to cut costs and streamline operations.
The country’s government is considering combining China National Petroleum Corporation (CNPC) and Sinopec, the Wall Street Journals.
Other options being studied include merging China National Offshore Oil Corporation (CNOOC) and Sinocehm Group.
Officials close to the matter said no timetable has been set to determine whether a merger will go through.
“They’re increasingly fighting among each other. That has led to lots of waste and inefficiency,” an official close to the plan told the Wall Street Journal.
The companies have not commented on the reports.
The studies are part of a larger effort by President Xi Jinping to make China’s state owned firms more competitive internationally.
A merger could create an oil company nearly twice as large as ExxonMobil by revenue.
“We want to create a big Chinese brand to better compete overseas. We want our own ExxonMobil,” the unidentified official said.