Thu, Nov. 19, 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.
Mon, Apr. 27, 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
Tue, Feb. 17, 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.
Sep. 15, 2014, 1:32 AM
- After announcing the sale of a $17.5B stake in its retail unit to investors, Sinopec (NYSE:SNP) now says it will use the cash toward optimizing its retail fuel business, boosting its non-fuel sales and paying down debts owed to its parent.
- The deal comes as the Chinese government pushes to restructure its state-owned enterprises by bringing in private capital.
- The stake will be sold to a group of 25 Chinese and foreign investors.
Dec. 16, 2013, 11:28 AM
- Royal Dutch Shell’s (RDS.A, RDS.B) long-awaited sale of its $6.4B stake in Woodside Petroleum (WOPEF, WOPEY) may open the door for Asian buyers to grab a slice of Australia’s second-largest oil and gas producer, or even the whole company, Bloomberg speculates.
- Shell, which sees its 23% holding in Woodside as “increasingly non-core," may exit its stake as soon as next year; while Shell may opt to sell the stock back to Woodside and institutional investors, China’s Cnooc (CEO) and Sinopec (SNP) might pursue the stake or a full takeover.
- Government opposition to a foreign takeover may have eased since Shell was blocked in 2001, analysts say, and the company is more affordable after its multiple to cash flow has been more than cut in half since 2011.
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. 30, 2013, 10:46 AM
- Apache's (APA +7.6%) ability to close the $3.1B sale to Sinopec (SNP -1.5%) for its Egypt assets at a surprisingly high price is impressive in light of the political turmoil in the region, Simmons analysts say.
- The deal implied a total Egypt asset value of $9.3B, higher than estimates of ~$7.7B, and it also came early, with expectations centering around a move in 2014, the firm says.
- Egypt likely accounts for 20% of APA's current production, 25% of its cash flow, "and a disproportionately larger share of investor concerns."
Aug. 30, 2013, 9:11 AM
- Apache's (APA) sale of a 33% stake in its Egypt business to Sinopec (SNP) for $3.1B is a "game-changer," Deutsche Bank says, as it increases the momentum of change at APA and obtains value for an asset the market was discounting.
- The deal rebalances the APA portfolio, with Egypt now comprising 15% of production vs. 20% in FY 2012.
- The firm "embraces" the restructuring at APA and believes "there is more to come."
- The lifting and de-risking of $3.1B of additional value from Egypt could see shares up $7-$8, DB says; APA +7.6% premarket.
Aug. 29, 2013, 11:10 PM
- Apache (APA) agrees to sell a 33% stake in its Egypt oil and gas business to Sinopec (SNP) for $3.1B.
- APA says the move continues its strategy of rebalancing its portfolio toward assets with predictable growth rates and attractive rates of return.
- Net production at APA's Egypt operations averaged 100K bbl/day of oil and 354M cf/day of natural gas in 2012; its assets are located in remote areas and have remained unaffected by political events in the region.
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.
Jun. 24, 2013, 8:48 AMSinopec (SNP) agrees to buy a 10% stake in a Marathon Oil (MRO) Angolan offshore oil and gas field for $1.52B. Adding overseas assets should be good news for SNP and its parent China Petrochemical, as upstream businesses traditionally provide better margins, an analyst says, but Chinese energy stocks likely will fall today on broader concerns over China's economy. | Jun. 24, 2013, 8:48 AM | Comment!
Dec. 17, 2012, 2:31 PMTalisman Energy (TLM +0.6%) completes a previously announced $1.5B deal with Sinopec (SNP -1.3%) for a 49% interest in the Canadian producer’s North Sea business. There was no serious opposition to the partnership, but it's the latest example of the growing cooperation between Canada and China in oil and gas development. | Dec. 17, 2012, 2:31 PM | 1 Comment
Dec. 6, 2012, 12:29 PMA Cnooc (CEO) takeover of Nexen (NXY) would give it the largest stake in the Buzzard oil field in the North Sea that "has increasingly influenced" global oil prices, according to a memo sent to Canada PM Stephen Harper. China's government also would own a 16% share of Syncrude, Canada’s biggest oil sands project in production, with Sinopec (SNP) owning 9% and CEO acquiring NXY’s 7%. | Dec. 6, 2012, 12:29 PM | Comment!
Nov. 6, 2012, 4:46 PMChina's Sinopec (SNP) has signed a preliminary deal to buy stakes in Nigerian onshore oil blocks from Total (TOT) worth ~$2.4B, Bloomberg reports. The French group said in September it planned to sell assets worth $15B-$20B in the period up to 2014 to raise cash for oil and gas projects. | Nov. 6, 2012, 4:46 PM | 1 Comment
Oct. 15, 2012, 8:25 AMWith regulatory hurdles too high, state-owned Sinopec (SNP) and ENN Energy (XNGSF.PK) drop their $2.2B hostile bid for home-country natgas operator China Gas (CGHOF.PK). All's not lost, though, as China Gas goes for a strategic co-op agreement letting Sinopec sell gas directly to Chinese homes, and allowing for future share buys. (previously) | Oct. 15, 2012, 8:25 AM | Comment!
Aug. 21, 2012, 3:57 AMConocoPhillips (COP) and Origin Energy (OGFGF.PK) are looking to sell a $3B 15% stake in their $20B LNG project in Queensland in Australia. Origin said in July that it intends to reduce its holding to 30% from 37.5%, with Bloomberg reporting that ConocoPhillips is now set to do the same. Meanwhile, Sinopec (SNP) is paying $2.1B to raise its stake to 25% from 15%. | Aug. 21, 2012, 3:57 AM | 2 Comments
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