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PetroChina Company Limited (PTR)

- NYSE
  • Nov. 19, 2014, 8:54 AM
    • A Singapore petroleum storage company partly owned by PetroChina (NYSE:PTR) has started testing investor interest in an IPO of more than $770M, WSJ reports.
    • PTR reportedly is looking to sell some portion of its 35% stake Universal Terminal‘s IPO; the company, which is one of the largest petroleum products storage operators in Asia Pacific, plans to list on the Singapore stock exchange as a trust by end of this year.
    • The petroleum product storage business, especially in Singapore, has been strong as companies seek space to store their fuel products to meet growing demand in the region.
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  • Nov. 9, 2014, 8:28 AM
    • Russia and China have signed a framework agreement for another gas supply deal, just months after the two countries sealed a $400B deal for Moscow to provide 38B cubic meters (bcm) of gas to China annually for 30 years.
    • The memorandum of understanding was signed between Russia's Gazprom (OTCPK:OGZPY) and state-owned China National Petroleum (NYSE:PTR).
    • Under the terms of the framework agreement, CNPC will also buy a 10% in Russia's Vankorneft, a subsidiary of Russia's largest oil producer Rosneft (OTC:RNFTF).
    | 29 Comments
  • Oct. 20, 2014, 2:18 PM
    • PetroChina (PTR +0.4%) says it is on course to surpass a 2.6B cubic meter target for shale gas production in 2015 from fields in Sichuan province, adding that the estimate is conservative and newer technology may push the number much higher.
    • Geographical structures in PTR’s fields in southern Sichuan are more difficult to drill through than the Fuling project, where Sinopec (NYSE:SNP) operates China’s largest shale-producing project, and gas reservoirs have been smaller
    • PTR has nine shale gas exploration rights in Sichuan and Chongqing provinces; four have started or are close to commercial production.
    | 1 Comment
  • Oct. 17, 2014, 11:56 AM
    • China National Petroleum (PTR +1.3%) warns it will have difficulty in meeting its profit targets this year because of the recent slump in crude oil prices.
    • The state-run company says it expects oil prices to decline further this quarter, that lower rates would reduce its earnings from oil sales and cut the value of its product inventories, which remain high.
    • CNPC’s statement echoes that of Nomura, which is saying that U.S.-traded crude has the potential to drop below $70/bbl by year-end if OPEC fails to cut production.
    | 2 Comments
  • Oct. 15, 2014, 12:09 PM
    • During a three-day visit to Moscow that ended yesterday, China and Russia signed 38 new deals, including a big expansion in Russian gas sales to China; Russian Pres. Putin sealed a $400B gas contract with China in May, but the fresh deal reportedly would double that (OTCPK:OGZPY).
    • New projects include a reported $10B Chinese commitment to upgrade Russia's railroads, a "strategic partnership" between Russia's Rosneft (OTC:RNFTF) and China's CNPC (NYSE:PTR), joint development of a long-haul passenger jet, and a deal to open a yuan-ruble swap line worth $24B in an apparent bid to reduce dependence on the U.S. dollar.
    • It's a golden opportunity for China to leverage Russia's political problems with the West and nail down long-term oil and gas contracts at bargain prices, experts say.
    • ETFs: FXI, RSX, PGJ, RUSL, GXC, YINN, FXP, RUSS, ERUS, YANG, CHIX, MCHI, XPP, RBL, YAO, YXI, CHXF, FCA, CHIE, CN, RUDR
    | 14 Comments
  • Oct. 13, 2014, 8:59 AM
    • TransCanada (NYSE:TRP) says provincial regulators have approved its 900K bbl/day Grand Rapids pipeline to carry diluted bitumen from Fort MacKay in the oil sands of northern Alberta to the Edmonton transportation hub.
    • As well as shipping crude to Edmonton, Grand Rapids will transport 330K bbl/day of diluent from the Edmonton area to the Fort MacKay terminal.
    • PetroChina (NYSE:PTR) subsidiary Brion Energy will be the anchor shipper on the pipeline, with committed production from its Dover and MacKay projects expected to eventually reach 520K bbl/day.
    | 3 Comments
  • Oct. 9, 2014, 7:19 PM
    • The cost of Kashagan, already the world’s most expensive oil project, is set to rise by at least $3.6B as the companies developing it are forced to replace more than 200 miles of leaking pipelines, FT reports.
    • The consortium - which includes Shell (RDS.A, RDS.B), Exxon (NYSE:XOM), Total (NYSE:TOT), Eni (NYSE:E) and CNPC (NYSE:PTR) - marked first production at the Kazakhstan field in September last year after spending $50B on its development, but production has been shut ever since, when sulfur-containing gas was discovered leaking from pipelines between the field and the shore.
    • FT says that a meeting of a Kazakhstan government group was told this week that the cost of replacing the pipelines and restarting production had been estimated at $1.6B-$3.6B, depending on the equipment chosen, and that the consortium would choose the more expensive, more corrosion-resistant option.
    | 8 Comments
  • Oct. 9, 2014, 9:19 AM
    • China National Petroleum (NYSE:PTR) has gained government approval for the design of the Chinese section of the giant gas pipeline from western Siberia to China that is expected to ship $400B worth of Russian natural gas to China.
    • Construction of the Chinese section will start in H1 2015 and is expected to be completed in 2018, CNPC says.
    • The 2,500 mile pipeline, being built by Gazprom (OTCPK:OGZPY), forms a key part of Russia's energy strategy, symbolizing the country's attempts to wean itself off dependence on European markets that account for most of its exports.
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  • Oct. 6, 2014, 6:08 PM
    • The government of Chad is prepared to re-auction oil extraction licenses it has revoked from China National Petroleum (NYSE:PTR) if the company does not pay a fine for alleged environmental violations, the country’s minister of planning says.
    • The dispute that has been brewing for more than a year saw Chad fine the Chinese state-owned firm $1.2B for alleged oil dumping; CNPC has said it won’t pay the fine and disputes the allegations against it.
    • CNPC has not paid the fine and talks are still going on, the minister says.
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  • Sep. 17, 2014, 11:46 AM
    • Sinopec (SNP -0.4%) and PetroChina (PTR +2%), China's largest oil and gas producers, plan to increase shale gas output by 40%/year to meet the country’s production target.
    • SNP plans to invest 21.5B yuan ($3.5B) in shale gas drilling and expects to produce as much as 3.5B cu. meters by 2015, while PTR is targeting output of more than 2.5B cu. meters in 2015 after investing 11.2B yuan, according to the Ministry of Land and Resources.
    • China’s 2015 target depends on SNP's ability to produce shale gas at the Fuling project in the country’s southwest, but the company has halved its target of producing 60B cu. meters by the end of the decade because of geological challenges.
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  • Sep. 5, 2014, 3:35 PM
    • Royal Dutch Shell (RDS.A, RDS.B), which signed the first shale gas production sharing contract in China, says it will trim its project in Sichuan province because of geological challenges and the area’s dense population.
    • Shell, along with China National Petroleum (NYSE:PTR), had planned billions of dollars in investment to meet the country’s energy demand, but Shell now plans to focus chiefly on the development of the Changbei tight gas field in the Shaanxi region.
    | 4 Comments
  • Aug. 29, 2014, 2:45 PM
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  • Aug. 29, 2014, 11:58 AM
    • China energy heavyweights Sinopec (NYSE:SNP) PetroChina (NYSE:PTR) have raised their outlook on the country's shale gas industry but stopped short of predicting a near-term boom.
    • Costs are coming down sharply, SNP Chairman Fu Chengyu said at the company's H1 results briefing earlier this week, citing the cost of shale gas drilling at the Fuling field - the country's largest shale gas project - which has been falling steadily to ~60M yuan ($9.8M) per well.
    • PTR Vice Chairman and President Wang Dongjin said the company is keeping its drilling cost at 55M yuan per well and will strive to keep it under 50M.
    • But Fu and Wang both ruled out the possibility of a shale gas boom in the near future, saying costs must come down much more and gas prices must rise further to justify a substantial step-up in investment.
    | 1 Comment
  • Aug. 28, 2014, 11:15 AM
    • Athabasca Oil (OTCPK:ATHOF +3.2%) jumps after PetroChina (PTR -1.9%) President Wang Dongjin says the long-delayed $1.23B payment for its stake in the Dover oil sands project will be made soon.
    • PTR was supposed to have completed the acquisition in June, but delayed payment amid the Chinese government's corruption investigation into the company; PTR also was said to want to reduce the amount owed because it believed the assets are of poorer quality than expected.
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  • Aug. 28, 2014, 8:03 AM
    • PetroChina (NYSE:PTR) says its H1 net profit rose 4% Y/Y as losses at its refining and chemical businesses narrowed after fuel pricing reforms last year; for the quarter, profit rose ~15% Y/Y to $33.9B yuan ($5.5B), matching expectations.
    • However, H1 operating profit from PTR's natural gas and pipeline business fell 81% Y/Y to 4.1B yuan, partly because PTR needed to procure expensive natural gas imports to meet rising demand; PTR has lost billions of dollars from selling imported natural gas at deep discounts in recent years.
    • Analysts expect PTR to report stronger H2 results thanks to a natural gas price increase and potential gains from asset sales.
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  • Aug. 28, 2014, 5:08 AM
    • In a grudging first step towards opening its state-dominated oil sector, China has granted a crude import license to non-state-owned Guanghui Energy.
    • China's Ministry of Commerce stopped short of truly opening the market, since the new license does not actively pose a threat to China’s Sinopec (NYSE:SNP) and PetroChina (NYSE:PTR).
    • Included in its WTO commitments, China allocates about 10% of its crude imports to non-state traders, but additional paperwork limits their competitiveness.
    • ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, CHIE, OLO, OLEM, TWTI
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Company Description
PetroChina Co Ltd is engaged in the exploration, development, production and sale of crude oil and natural gas; refining of crude oil and petroleum products, transmission of natural gas, crude oil and refined products and sale of natural gas.