CHINA Petroleum & Chemical Corp., China’s largest oil refiner, has invited banks to pitch for handling the sale of part of its retail assets of thousands of gas stations and convenience stores, sources familiar with the matter said Friday.

    The firm, also known as Sinopec, is looking to complete a private sale of part of its retail assets or list a stake in the division, the sources said. Banks have been asked to submit proposals by this week.

    Sinopec said earlier this year that it plans to introduce partners into its retail business by June. The new subsidiary that holds Sinopec’s retail operations, Sinopec Easy Joy Sales Co., houses more than 30,000 gas stations owned by Sinopec as well as 23,000 convenience stores that accompany some of those fuel stations. The company could list the unit, the sources said, but there is no time frame or listing venue. Sinopec couldn’t immediately be reached for comment.

    Sinopec said it would allow outsiders to own up to 30 percent of the retail business, worth more than US$20 billion, according to Barclays. Potential investors could include supermarket operators.

    Sinopec and PetroChina Co. have seen their returns decline in the past seven years, as they made a massive push to expand their investments overseas. To improve the performance of their shares, the two are restructuring their volatile downstream refinery and marketing businesses, including the gas stations, by introducing outside investors. PetroChina controls much of the country’s pipeline distribution of natural gas.

    The core of Sinopec’s operations is oil refining and sales, but those segments aren’t as attractive as the oil and gas business. (SD-Agencies)