Freshfields Bruckhaus Deringer and Tian Yuan Law Firm have advised Sinochem Energy, a unit of China’s state-owned Sinochem Group on its $2 billion Hong Kong initial public offering, with Clifford Chance and Fangda Partners counselling the joint sponsors.

Sinochem Energy manages Sinochem Group, manages the group’s oil and petroleum products trading, refining, storage and logistics, as well as distribution and retail businesses. According to an earlier Reuters report, the group had hired seven banks for the listing of its key oil assets.

The joint sponsors are Morgan Stanley Asia, CLSA Capital Markets and BOCI Asia.

The proposed float comes amid a push by Beijing to inject new life into bloated state-owned enterprises by encouraging private capital investment in such enterprises, said Reuters.

Sinochem Energy, which operates one of China’s largest commercial oil tank farms, with 32 million barrels of storage capacity, and about 800 petrol stations, said in its filing that it plans to expand its key refining asset, the Quanzhou refinery in the southern province of Fujian, to 300,000 barrels per day (bpd), from 240,000 bpd now, added Reuters. 

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