The move is reportedly aimed at reducing such firms’ monopoly in the oil and gas market and improving competition.
Reports state that the plan has been set, and was now being studied and implemented in steps.
China’s oil industry is dominated by state players China National Offshore Oil Corp, China National Petroleum Corp and Sinopec Group, parent of Sinopec Corp.
The move is in line with Beijing’s plans to allow domestic private investors greater access to its energy sector.
Sinopec has already been a testing ground for such reforms. In September, it reportedly sold 30 per cent of its retail business to 25 big financial firms for $US17.5 billion.