Stephen Simpson, CFA
Nov. 30, 2015, 11:49 AM
- Chinese and Australian regulators are expected to give the green light to Royal Dutch Shell’s (RDS.A, RDS.B) takeover of BG Group (OTCQX:BRGXF, OTCQX:BRGYY) before Christmas, according to The Telegraph, which reports that Shell CEO Ben van Beurden recently had direct meetings with the president of China’s ministry of commerce.
- China was originally believed to be viewing the deal as an opportunity to renegotiate long-term contracts between Shell and the country’s top energy producers, but Cnooc (NYSE:CEO) and China National Petroleum (NYSE:PTR) have pledged broad support in return for continued co-operation with Shell on projects around the world.
Nov. 19, 2015, 7:57 AM
- Royal Dutch Shell's (RDS.A, RDS.B) proposed tie-up with BG Group (OTCQX:BRGXF, OTCQX:BRGYY) secured clearance yesterday from one of two Australian regulators but still requires approval from China, but Reuters reports that Chinese regulators are pressing the company to sweeten long-term gas supply contracts, which could cast new doubt on the near-term benefits of the deal.
- As the Chinese regulatory approval process entered its third and final 60-day phase earlier this month, the government asked Shell to review prices in LNG contracts worth tens of billions of dollars annually with China National Petroleum (NYSE:PTR), Cnooc (NYSE:CEO) and Sinopec (NYSE:SNP), according to the report.
- Shell officials are said to fear that a revision of the terms of the contracts could create a ripple effect around the world, further eroding gas prices.
Sep. 16, 2015, 9:21 PM
- Australia’s antitrust regulator again defers a decision on Royal Dutch Shell's (RDS.A, RDS.B) planned takeover of BG Group (OTCPK:BRGXF, OTCQX:BRGYY), this time until Nov. 12, warning the deal could raise prices and cut the supply of natural gas to consumers on the east coast of Australia.
- The Australian Competition and Consumer Commission says its preliminary view is that the deal could decrease the incentive for Shell’s Arrow Energy joint venture with PetroChina (NYSE:PTR) to supply gas domestically, which could substantially reduce competition in Queensland state or the eastern Australian gas market.
- The European Commission approved the deal earlier this month but approvals from Australia and Chinese authorities remain pending.
Apr. 27, 2015, 8:15 AM
- PetroChina (NYSE:PTR) and Sinopec (SNP, SHI), China’s two largest oil explorers, jumped by their daily trading limit in Shanghai on speculation the government is considering consolidating the industry.
- PTR jumped 10% to 14.65 yuan, the highest in more than five years, and SNP also surged 10% to 8.56 yuan at the close in Shanghai; in U.S. premarket action, PTR +5%, SNP +5.7%, SHI +17.1%.
- A report also said China’s state-assets regulator may cut the number of government-owned enterprises to 40 from 112 through mergers and restructuring.
- Earlier: Chinese shares continue powerful ascent
Feb. 17, 2015, 3:31 PM
- China may merge its state-owned oil companies to create giants that will be more efficient and capable of taking on big overseas rivals, WSJ reports.
- One plan reportedly would combine the country’s largest oil companies, CNPC (PTR +2%) and Sinopec (SNP +4.2%), while other options include merging Cnooc (CEO +1.8%) with Sinochem.
- The firms have expanded into each others’ turf over the years, creating overlapping operations that span everything from exploration to refining to running gas pumps.
- No timetable is set for a decision on whether or when to proceed with the mergers, WSJ says.
Aug. 4, 2014, 6:39 AM
- PetroChina (NYSE:PTR) plans to pay the more than $1B it needs to complete a takeover of the Dover oil sands project from Athabasca Oil (OTCPK:ATHOF) by the end of September, Reuters reports.
- PetroChina was supposed to complete the acquisition of Athabasca Oil's 40% stake in the project in June, but delayed the payment while it re-evaluated the transaction amid a government-led corruption probe into the Chinese national oil company.
- Athabasca Oil shares fell last week after it said it was still trying to collect the C$1.23B payment owed to it by a unit of PetroChina.
Jul. 25, 2014, 6:45 AM
- PetroChina (NYSE:PTR) is having second thoughts of auctioning off its multi-billion dollar Eastern Pipelines division, and may now sell it to an affiliate - United Pipelines. Eastern Pipelines' NAV is valued at an estimated $4.7B-$6.3B.
- The move would allow the gas giant to retain control over the national gas grid as well as raise cash to fund oil and gas exploration. However, the new decision would put a setback on the government's plans to open up the state-dominated energy sector to domestic private investors.
Nov. 28, 2013, 4:34 AM
- Exxon Mobil (XOM) will today hand over a 25% stake in Iraq's West Qurna-1 oilfield project to PetroChina (PTR), Iraq's deputy prime minister for energy says. Exxon agreed to sell the holding in August.
- However, no mention was made of Indonesia's Pertamina, which is buying a 10% interest from Exxon. The latter owned 60% before the deals were agreed.
- Exxon is remaining the operator of the field.
Nov. 13, 2013, 7:13 AM
Aug. 30, 2013, 3:48 PM
- Apache (APA +9.2%) may have "knocked it out of the park" with its sale of a third of its Egypt oil and gas assets to Sinopec (SNP -1.2%) for $3.1B (I, II), but the reaction toward SNP is more ambiguous.
- The deal, China's biggest investment in the Middle East to date, shows a continued global search for energy and resources to feed an economy growing at a 7%-plus annual rate and a higher tolerance for risk than its western counterparts; note that PetroChina (PTR) reportedly is in talks to acquire 25% of Exxon's (XOM) West Qurna-1 oilfield in Iraq.
- The deal also could provide a boost for other energy producers with significant operations in the region; Occidental Petroleum (OXY -0.2%) produces ~37% of its total output in the Middle East and North Africa, and is thought to be looking to sell all or part of those assets.
Aug. 6, 2013, 7:56 AM
- China National Petroleum (PTR) already spent more money this year on energy assets than any other global producer, and oil and gas fields controlled by Exxon Mobil (XOM) and Rosneft (RNFTF.PK) may be next, Bloomberg speculates.
- CNPC is ramping up deals to make up for lost ground after Sinopec (SNP) and Cnooc (CEO) outspent it by $50B on overseas transactions in the five years through 2012.
- CNPC’s success with mature fields makes an XOM asset in Iraq a target, while a supply agreement with Rosneft may lead to deals with the Russian producer.
Dec. 20, 2012, 9:42 AM
The Canadian government confirms that Encana's (ECA) $2.2B JV with China's PetroChina (PTR) is not subject to review under the Investment Canada Act. ECA agreed to sell 49.9% of its big Duvernay natural gas and liquids play in Alberta to PTR days after the Canadian government said it would increase scrutiny of investment by state-own enterprises such as PTR.| Dec. 20, 2012, 9:42 AM
Dec. 17, 2012, 12:52 PM
PetroChina's (PTR) two recent gas deals in Canada and Australia get the thumbs down from Nomura, which says the state-backed oil company needs to take a “more disciplined approach" in its overseas acquisition strategy. PTR overpaid in the Canada deal given the collapse in nat gas prices, and it could have waited to acquire Australia's Browse LNG asset at a cheaper rate.| Dec. 17, 2012, 12:52 PM
Dec. 11, 2012, 5:02 PM
BHP Billiton (BHP) sells its 8.33% stake in the East Browse joint venture and 20% interest in the West Browse joint venture, both located off the West Australian coast, to PetroChina (PTR) for $1.63B in cash. BHP exec Michael Yeager says the liquefied natural gas project interests were a non-strategic asset.| Dec. 11, 2012, 5:02 PM
Feb. 2, 2012, 4:33 PM
Moving a bit more cautiously as it seeks to garner expertise and supplies in the energy sector, China quietly chalks up a trio of deals: PetroChina (PTR) buys a 20% stake in a Canadian shale project owned by Shell (RDS.A), China Investment Corp. picks up a minority share in U.S.-based EIG Global Energy Partners, and China National Offshore Oil inks a JV will Spanish solar-power-equipment maker Isofoton.| Feb. 2, 2012, 4:33 PM
Jan. 3, 2012, 1:00 PM
Athabasca Oil Sands (ATHOF.PK) exercises its option to sell its 40% stake in the MacKay River oil-sands project in Alberta to joint owner PetroChina (PTR +4.9%) for C$680M ($669M). The transaction comes less than a week after regulators approved the planned 150,000-barrel-a-day project. (PR .pdf)| Jan. 3, 2012, 1:00 PM | 1 Comment