CHINA Oilfield Services Ltd, a unit of the Chinese mainland's third-largest oil producer, said its shareholders have approved a plan to sell as many as 820 million new yuan-denominated shares to raise funds for expansion.

The funds will be used to build vessels and for drilling and exploration equipment, Bloomberg News reported, citing the company's statement with the Hong Kong stock exchange late on Wednesday. The A-shares will be listed on the Shanghai Stock Exchange, it said. The plan is still awaiting approval from the government.

China Oilfield, whose biggest source of revenue is CNOOC Ltd, wants to expand and benefit from rising demand for drilling services that has driven up the cost of hiring rigs.