China top offshore oil specialist CNOOC has taken over a refining and chemical firm in eastern Shandong, its first solid toehold in a leading regional oil market that is home to many independent Chinese refiners.

CNOOC has gained effective control of Shenzhen-listed Shandong Haihua Co after the local government in Weifang city in Shandong gave CNOOC 51 per cent of the parent, Shandong Haihua Group, the listed unit said in a release submitted to the Shenzhen Stock Exchange.
Haihua said the deal is subject to government approvals. CNOOC officials were not immediately available for comment.
Haihua Group’s revenue surpassed 22 billion yuan ($3.22 billion) in 2007 and its products range from diesel and calcium chloride to soda ash.
CNOOC, aiming to become an integrated oil firm in the world’s largest oil market after the US, is scheduled to start operating its first major refinery in southern Guangdong province in November to meet booming local demand.
The parent of CNOOC has also been eager to enter northern coastal markets, including Shandong and Hebei, that are close to its major oil-producing fields in the Bohai Bay. It signed a framework deal with Shandong government early this year to boost oil and gas cooperation, varying from integrating local refiners, building ports, oil storage tanks and gas pipelines, as well as considering a liquefied natural gas project.