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PetroChina Company Limited (PTR)

- NYSE
  • 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.
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  • 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.
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  • 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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  • Aug. 19, 2014, 3:13 AM
    • PetroChina (NYSE:PTR) is re-evaluating its multi-billion-dollar push for LNG production, due to the rising cost of the gas and China's slower growth rate that has reduced demand.
    • An anti-corruption probe of PetroChina's top executives also adds to the uncertainty of the company's business strategy.
    • PetroChina shut two loss-making gas liquefaction plants in the past month, with neither plant having a clear restart date.
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  • Aug. 14, 2014, 5:21 PM
    • China National Petroleum (NYSE:PTR) denies breaking environmental rules in Chad's oil sector and calls on the government to cancel its $1.2B claim filed before an arbitration court in Paris.
    • The dispute erupted in July last year after Chad said it discovered large quantities of crude oil had been dumped into pits dug in the Koudalwa region, where CNPC has held licenses to several oil blocs since 2009; Chad has since canceled five explorations licenses held by CNPC.
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  • Aug. 13, 2014, 7:58 AM
    • Singapore-based petroleum storage company Universal Terminal, 35% owned by PetroChina (NYSE:PTR), reportedly is looking to raise 1B Singapore dollars (US$800M) from an IPO in the next year.
    • The company, majority owned by Singapore billionaire Lim Oon Kuin's Hin Leong Group, is said to be talking to banks for a potential listing through a business trust, and is in the process of seeking approval from its shareholders including PTR.
    • An IPO would test investor appetite for trusts in Singapore, Asia's top venue for such stocks, at a time when demand is flagging.
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  • 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.
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  • Jul. 28, 2014, 10:48 AM
    • Athabasca Oil (OTCPK:ATHOF -6.8%) is downgraded to Market Perform from Outperform with a $7.50 price target, down from $10, at Raymond James on growing concerns about its relationship with PetroChina (PTR -1.3%).
    • The firm sees a risk regarding the anticipated C$1.23B payment from PTR, and it does not expect any improved clarity on the issue for some time.
    • The risks around the Dover project put also raise concerns about the pace of development for Athasbasca’s Duvernay assets and the company’s ability to eventually secure a joint venture partner, the firm says.
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  • Jul. 28, 2014, 8:58 AM
    • Athabasca Oil (OTCPK:ATHOF) says it is continuing work to close its option to sell its 40% stake in the Dover oil sands project for C$1.32B to PetroChina (NYSE:PTR).
    • Athabasca is depending on the payment from PTR to fund its drilling program, including in the Duvernay shale in Alberta.
    • A put option exercised by Athabasca on April 17 forces a PTR subsidiary to buy the 40% it does not own in the undeveloped Dover oil sands project, based on a 2010 agreement.
    • Recent reports suggest PTR is trying to lower its Dover project put payment.
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  • 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.
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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.