PetroChina Co, the nation's largest oil producer, said it plans to issue up to 60 billion yuan (8.7 billion U.S.) worth of corporate bonds to reduce debt, supplement working capital and fund projects.

The bonds may be sold in several tranches and will have maturities of up to 15 years, the company said in a filing to the Shanghai Stock Exchange today. This would be the company's largest ever bond sale.

The firm said it needs a large amount of capital through 2010 for projects, as well as to cover rising windfall tax payments on crude oil sales and government price controls on refined oils.

Part of the proceeds could also be used for the country's second natural gas pipeline.

PetroChina also said its board has approved a plan to buy 208 pump stations and 25 fuel storage facilities from parent China National Petroleum Corp for about 1 billion yuan.

PetroChina's shares had dropped 0.74 percent to 16.01 yuan at 11:05 a.m. in Shanghai.

(Shanghai Daily June 11, 2008)