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.
Fri, Feb. 6, 10:59 AM
- China's three major national oil companies - China National Petroleum (NYSE:PTR), Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO) - may be largely immune to the global energy rout, according to recent reports.
- Government fiscal incentives in the form of tax breaks for exploration businesses will provide relief for Chinese national oil companies, Wood Mackenzie notes.
- CNPC is best positioned to weather the oil price decline because of its lower E&P production cost, larger natural gas businesses and diversification into downstream businesses, according to Moody's.
- Barclays believes Cnooc is a winner since it boasts the strongest balance sheet among Chinese state-owned enterprises, but a sharp earnings decline will be unavoidable if oil remains lower for longer.
Tue, Feb. 3, 7:59 AM
- Cnooc (NYSE:CEO) says it plans to cut capital spending by 26%-35% in 2015 compared with a year earlier, as China’s biggest energy companies tighten their belts amid plunging oil prices.
- Cnooc says that despite the capex cuts, it would still meet oil production growth targets through “cost control and efficiency enhancement,” forecasting output of 475M-495M boe in 2015, up from ~432M boe last year.
- Cnooc could be facing writedowns of more than $5B related to its 2013 acquisition of Canada’s Nexen, according to J.P. Morgan.
- Larger rival China National Petroleum (NYSE:PTR) is pledging “revolutionary measures” to cut costs, and a joint venture between Sinopec (NYSE:SNP) and Canada’s Talisman Energy (NYSE:TLM) is laying off several hundred staff and contractors in the U.K.
Fri, Jan. 30, 12:26 PM
- PetroChina (PTR -1.1%) reportedly has started trial operations at a crude pipeline in Myanmar that could shorten the time for shipments to reach refineries.
- A VLCC capable of hauling 300K metric tons discharged oil into tanks at Myanmar’s Ma-de island port, the pipeline’s starting point, facility operator China National Petroleum says on its website.
- The project will help CNPC’s listed unit to take delivery of crude bought from the Middle East and Africa; China is seeking to diversify its sources of crude supply to improve energy security, as the share of imports needed to meet domestic demand is forecast to surpass 60% this year for the first time ever.
Fri, Jan. 2, 2:30 PM
- As many as 16 oil sands’ projects worth nearly $60B that have not yet received corporate sanctioning may be deferred if current oil prices persist, according to upstream research analysts at Wood Mackenzie.
- Key projects the firm expects to come on line by 2017 include the 165K bbl/day Fort Hill venture owned by Suncor (NYSE:SU), Total (NYSE:TOT) and Teck Resources (NYSE:TCK); Canadian Oil Sands' (OTCQX:COSWF) 100K bbl/day Mildred Lake replacement project; Imperial Oil’s (NYSEMKT:IMO) 110K bbl/day Kearl Phase 2; ConocoPhillips' (NYSE:COP) 109K bbl/day Surmont Phase 2; and Shell’s (RDS.A, RDS.B) 100K bbl/day Jackpine expansion.
- Projects expected to face delays include Cenovus Energy’s (NYSE:CVE) Christina Lake Phase H and its Narrows Lake Phase A; expansion work at Husky Energy's (OTCQB:HUSKF) Sunrise SAGD plant; and PetroChina’s (NYSE:PTR) MacKay River project.
- Most analysts expect a 10%-15% drop in capex for Canadian energy producers in 2015, with bigger cuts perhaps coming as the year unfolds to rival 2009's 20% capex decline.
Dec. 4, 2014, 2:56 PM
- PetroChina (PTR +6.4%) says it is teaming up with Sinochem (SHI +5.3%) to tap shale gas from five blocks in the southwest of China.
- The new entity plans to spend 26B yuan ($4.2B) to tap the five shale blocks, which total 15.6K sq. km in size and are mostly located near Chongqing; production is expected to begin in 2017.
- China is believed to hold the world's largest technically recoverable shale gas reserves but development is at an early stage.
Dec. 4, 2014, 6:32 AM
- The Shanghai Composite gained 4.3% overnight, bringing its advance over the past month to 19%, the most among 93 global markets. The index is now higher by 37% year-to-date.
- The rally comes not just alongside a PBOC rate cut, but as mainland stocks opened up to global investment in early November - exchange volume nearly doubled the previous 30-day average.
- Among the movers: PetroChina (NYSE:PTR) and Sinopec (NYSE:SNP) both soared by the 10% daily limit.
- FXI +3.9% premarket
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Nov. 21, 2014, 8:17 AM
- Korea Gas says it is seeking to sell part of its 15% stake in Royal Dutch Shell-led (RDS.A, RDS.B) LNG Canada natural gas export terminal planned for the Pacific coast of Canada.
- The project is one of 18 terminals proposed for shipping liquefied natural gas to Asian markets from Canada’s west coast; none of the plants have been built, amid concerns about construction and operational costs.
- Shell’s Canadian unit owns half of the project in partnership with affiliates of PetroChina (NYSE:PTR), which owns another 20%, along with 15% stakes each for Korea Gas and Japan’s Mitsubishi.
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.
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).
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.
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.
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.
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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.
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.
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.
PTR vs. ETF Alternatives
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.
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