Wed, Jul. 20, 1:10 PM
- Sinopec (SNP +0.6%) says its H1 crude oil production fell 11.4% Y/Y to 154.2M barrels, while natural gas output rose 10% to 388.7B cf, and oil processing fell 2.5% to 115.9M metric tons, highlighting the shift toward gas by the world's biggest refiner.
- SNP says the 13% drop in domestic crude oil output, which makes up more than 80% of of its production, outpaced the 3% slide overseas.
- SNP has said it plans to double annual gas production to 40B cm by 2020 as China pushes to replace coal with the cleaner fuel.
Wed, Jul. 13, 4:59 PM
- China's demand for oil has helped soak up some of the world's surplus crude oil, but the country’s refiners are now flooding markets with products including diesel and gasoline, WSJ reports.
- China says its total exports of refined fuels jumped 38% Y/Y to 4.2M tons, or ~1.02M bbl/day, in June, sending its refined fuel exports up 45% overall so far this year.
- Slowing domestic demand has left China’s oil refiners with huge surpluses they are looking to sell abroad, a trend that mirrors similar increases in China’s exports of processed basic materials such as steel in recent months and has provoked complaints from governments and industries around the world.
- Another key factor is the resurgence of China’s independent crude refiners: Last year, the government allowed them to directly import crude from abroad for the first time instead of buying more expensive crude from domestic state-owned oil companies, and the subsequent ramp-up in production has provided big state-owned refiners such as Sinopec (NYSE:SNP) and China National Petroleum (NYSE:PTR) with greater competition at home, leading them to sell more abroad.
Thu, Jun. 30, 9:44 AM
- Some Sinopec (SNP +0.7%) subsidiaries inflated their 2014 revenue and costs by 20.2B yuan ($3.04B) by manipulating their financial reports through fake invoices of fuel sales, among other discrepancies, according to a report by China's auditing department.
- The audit also showed SNP lost 1.29B yuan after it acquired a 49% stake in an overseas project, nd that crude output from 29 overseas production projects fell short of targets stated in feasibility studies.
- The auditing office also highlighted wasted investments by the SNP subsidiaries, such as 14 unused chemical plants, and raised red flags on two dozen "illegally acquired" fuel stations.
Sun, Jun. 26, 7:02 AM
- Strengthening their economic ties, Russia and China sealed a raft of energy deals during President Vladimir Putin's visit to Beijing on Saturday.
- ChemChina agreed to take a 40% stake in Rosneft's (OTC:RNFTF) planned petrochemical complex VNHK in Russia's Far East and signed a new one-year supply contract.
- The Russian firm also committed to negotiating the sale of 20% of its Verkhnechonsk unit to Beijing Enterprises (OTCPK:BJINY) and signed a framework agreement with Sinopec (NYSE:SNP).
- Previously: Putin weighs $11B Rosneft sale to China, India (Jun. 20 2016)
Fri, Jun. 17, 10:53 AM
- Repsol (OTCQX:REPYF, OTCQX:REPYY) says Sinopec (NYSE:SNP) has served an arbitration claim demanding ~$5.5B in compensation for the repayment of an investment in a 2012 joint venture.
- SNP and its subsidiary Addax Petroleum UK are seeking compensation for their initial investment and lost investment opportunities related to a North Sea oil and gas joint venture with Talisman Energy, which Repsol bought in 2014.
- "The arbitration notice is unfounded and does not reflect the loyal attitude one would expect from a partner," Repsol says.
Wed, Jun. 1, 6:47 PM
- Traders expect deliveries from the Syncrude project in Alberta for June to be cut by ~85%, Reuters reports.
- Unipec, the trading arm of Chinese refiner Sinopec (NYSE:SNP), advised customers this week it would cut its sales of Syncrude for June due to the force majeure on Syncrude's production, according to the report.
- Syncrude has not specified when operations would restart after closing a month ago during Alberta's wildfires, but says the facility is finalizing its safe return to operations.
- Suncor Energy (NYSE:SU) owns 53.74% of Syncrude, with Imperial Oil (NYSEMKT:IMO), SNP and Nexen (NYSE:CEO) the leading minority partners.
Mon, May 9, 3:23 AM
- Saudi Arabia is hoping to lure ExxonMobil (NYSE:XOM), Sinopec (NYSE:SNP) and BP into buying stakes of state-run oil company Aramco, when it sells 5% of its equity, according to the U.K.'s Telegraph newspaper.
- The country is planning a three-way listing for London, Hong Kong, and New York as early as 2017 that would in be 5x larger than any IPO in history (shares could be valued at $100B-$150B).
- Deputy Crown Prince Mohammed bin Salman first announced the decision in April, looking to spearhead his "2030 Vision" by diversifying and breaking the country's addiction to oil.
Thu, Apr. 28, 8:59 AM
- Sinopec (NYSE:SNP) says its Q1 net income jumped threefold to 6.66B yuan ($1.03B) from 2.17B yuan a year ago as lower oil prices were outweighed by the benefit of improved refining margins.
- China said in January that fuel prices would not be adjusted when oil falls below $40/bbl in an attempt to support the domestic energy industry and reduce pollution; the policy helped lift Q1 domestic refining margins to $16/bbl, up 45% Y/Y.
- SNP says Q1 sales fell 13% to 413.8B yuan, while oil and gas production fell 2.7% to 114.7M boe and total refining output fell 2.4% to 57.2M tons.
- Now read Sinopec's full-year profit slides 30% but beats estimates
Wed, Apr. 20, 6:58 PM
- Statoil (NYSE:STO) and its partners, including Repsol (OTCQX:REPYF, OTCQX:REPYY) and Sinopec (NYSE:SNP), announce production of the first oil and gas from the offshore Gavea field in Brazil, part of the largest-ever oil and gas discovery in the Campos Basin’s pre-salt layer.
- STO says the test well drilled on the site was at a depth of 6,230 meters, and when tests were launched it produced 4K bbl/day of crude oil 16M cf of natural gas.
- The project is controlled by state-run Petrobras (NYSE:PBR), but STO holds a 35% stake and will assume the role of operator later this year.
- Now read Statoil reports successful Gavea appraisal well with the Ocean Rig Mylos
Tue, Mar. 29, 11:59 AM
- Sinopec’s (SNP -0.3%) move to close some high-cost fields has caused it to slip to number three among China's oil and gas producers, as it also reports a 30% profit decline for 2015.
- PetroChina (PTR -3%) remains the country's top producer at 1.49M boe in 2015, but Cnooc (CEO -1.6%) overtook SNP with output of 496M, jumping nearly 15% Y/Y, while SNP produced almost 472M boe, down 1.7%.
- SNP "has the most mature exploration and production portfolio of the all three Chinese oil majors,” says Bernstein's Neil Beveridge, adding that strong reserves replacement by CEO suggests the company can stabilize production even in a low oil price environment.
Tue, Mar. 29, 7:52 AM
- Sinopec's (NYSE:SNP) 2015 net income fell more than 30% to the lowest level in more than five years, but it still topped analyst forecasts as refining revenues helped offset sliding oil prices.
- Refining helped cushion SNP from the severe profit declines felt by state-owned rivals PetroChina (NYSE:PTR) and Cnooc (NYSE:CEO), which both saw net income drop by at least 66%.
- Net income for 2015 totaled 32.4B yuan ($4.98B) from 46.5B yuan in 2014, on revenues of 2.02T yuan, down 29% Y/Y.
- SNP's oil and gas production fell 1.7% to 471.9M boe, the first decline in production in 16 years, according to Bloomberg.
Tue, Mar. 8, 11:25 AM
- Malaysia’s Petronas, frustrated by the uncertainty around the new federal government's climate change priorities, threatens to abandon its proposed $36B Pacific NorthWest LNG project in British Columbia if it does not win approval by March 31, Financial Post reports.
- The project received a largely favorable assessment from the Canadian Environmental Assessment Agency last month and was approved by the B.C. provincial government in 2014, but the new federal Liberal government is toughening environmental reviews of major energy projects and said in January they would be subject to additional assessment on “direct and upstream greenhouse gas emissions."
- After spending ~$12B to get the project to this stage amid multiple delays and setbacks, Petronas reportedly has conveyed to federal cabinet ministers it will not accept additional hurdles.
- Petronas and its partners, including Sinopec (NYSE:SNP), had been seen as the most likely to move forward with LNG exports from Canada’s west coast.
- None of the 20-plus groups - including stakeholders such as Shell (RDS.A, RDS.B), Chevron (NYSE:CVX) and Exxon (NYSE:XOM) - that have proposed LNG export projects have gone ahead with their plans.
Wed, Feb. 24, 8:57 AM
- China National Petroleum (NYSE:PTR), the country’s biggest oil and gas producer, may spin off its oilfield services business as part of its efforts to streamline and become more efficient, Chairman Wang Yilin told the IHS CERAWeek conference in Houston yesterday.
- However, the chairman provided no details on the timing or stake size of a potential oilfield services IPO.
- "This reform follows on from Cnooc (NYSE:CEO) and Sinopec (NYSE:SNP), who have partially spun off their oil services divisions," Bernstein analyst Neil Beveridge says, but “with the severe downturn in the industry and low valuations, the timing is not good.”
Wed, Feb. 17, 9:58 AM
- Sinopec (SNP +0.8%) reportedly will shut four oilfields this year at Shengli in the eastern province of Shandong, as low global oil prices take a toll on output of China's aging fields.
- The Shengli field, which has been operating since 1974, is said to have lost 9.2B yuan ($1.41B) in 2015 and 2.9B yuan this January alone.
- Production at Shengli already appeared to be falling since last year; between January and July 2015 (the latest figures available), the field produced 543.7K bbl/day of crude oil vs. 557.4K bbl/day in 2014.
- Production at Daqing, China's oldest and largest field by output, fell ~12M barrels, or 4%, in 2015.
Sat, Feb. 13, 8:25 AM
- Large energy companies will slash dividend payouts by a total of $12B this year, bringing global payouts down 9% Y/Y to $147B, according to Markit's dividend forecasting unit.
- Ten of the world's large-cap oil and gas companies are set to cut their dividend in 2016, Markit predicts, including ConocoPhillips (NYSE:COP), which already has slashed its payout for 2015 but likely will announce additional cuts by year-end.
- The other nine large-cap energy firms Markit sees cutting their dividend this year: Anadarko Petroleum (NYSE:APC), Ecopetrol (NYSE:EC), Eni (NYSE:E), Kinder Morgan (NYSE:KMI), Noble Energy (NYSE:NBL), Sinopec (NYSE:SNP), Cnooc (NYSE:CEO), PetroChina (NYSE:PTR) and Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY).
Thu, Feb. 11, 2:08 PM
- While oil production cuts in most of the world have been minimal so far, WSJ reports that China’s output could fall by 100K-200K bbl/day this year from a record high of ~4.3M bbl/day in 2015.
- “China’s declining crude production will help narrow the supply surplus in the global market,” says CLSA analyst Nelson Wang.
- Sinopec (NYSE:SNP) recently said its crude production fell nearly 5% last year, PetroChina (NYSE:PTR) said oil output fell by 1.5% over the first three quarters of 2015 - it has not yet released Q4 data yet - and Cnooc (NYSE:CEO) has said it expects output to decline 5% this year following years of rapid growth.
- Many of China’s oil fields are old, having been discovered in the 1980s, which makes them expensive to maintain; the marginal cost of production at some of China’s more expensive fields is now ~$40/bbl, making it unprofitable for Chinese oil companies to keep producing at recent market prices.
- A drop in Chinese oil output on its own would not be enough to rebalance global oil markets, but it is likely to increase the country's demand for oil from overseas.
China Petroleum & Chemical Corp. is an energy and chemical company, which engages in the exploration, production and transportation of petroleum products such as crude oil and natural gas. The company operates its business through the following segments: Exploration and Production, Refining,... More
Sector: Basic Materials
Industry: Independent Oil & Gas
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