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PetroChina Company Limited (PTR)

  • Dec. 20, 2013, 8:56 AM
    • Gazprom (OGZPY) is likely to sign a contract with China to supply natural gas by the end of January, Gazprom CEO Alexei Miller says.
    • China National Petroleum (PTR) and Gazprom agreed in September on the basic terms of an agreement, including volume, the date of the first delivery, payment and a take-or-pay amendment, but both countries failed to secure the most important detail: a price.
    | 1 Comment
  • Dec. 17, 2013, 9:56 AM
    • The head of Russia's Gazprom (OGZPY) says the long-awaited deal on deliveries to China may not be signed until February despite earlier vows to settle a contract before the end of the year.
    • Gazprom signed an agreement with China National Petroleum (PTR) in September on the basic terms for gas supplies but have not yet settled the question of price.
    • The two sides have signed initial agreements for the supply of 38B cu. meters of gas/year, the route of delivery, the level of guaranteed volumes CNPC must pay for, and the speed at which supplies will be ramped up.
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  • Dec. 17, 2013, 9:10 AM
    • The Chinese government has questioned two more executives from China National Petroleum (PTR) as part of a wider graft investigation into the state energy company, Reuters report.
    • One of the men, CNPC chief accountant Wen Qingshan, resigned from his post as chairman of Kunlun Energy, PetroChina's natural gas distribution arm.
    • CNPC has been rocked by a series of investigations targeting former and current high-ranking executives at the company and its listed units over the past five months.
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  • Dec. 6, 2013, 7:45 AM
    • The $6.4B Chuandongbei gas project being built by Chevron (CVX) in China faces further delays due to disagreements with partner PetroChina (PTR) over how to develop the fields, Reuters reports.
    • The project, CVX's largest investment in China, is now not expected to deliver first gas until H2 2014, nearly seven years after the firms reached a 30-year deal to produce 7.6B cubic meters/year of gas.
    • The complexity of the high-pressure, high sulfur project means higher operational risk and higher standards for technical processes, which may have contributed to the delays.
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  • Nov. 28, 2013, 4:34 AM
    • Exxon Mobil (XOM) will today hand over a 25% stake in Iraq's West Qurna-1 oilfield project to PetroChina (PTR), Iraq's deputy prime minister for energy says. Exxon agreed to sell the holding in August.
    • However, no mention was made of Indonesia's Pertamina, which is buying a 10% interest from Exxon. The latter owned 60% before the deals were agreed.
    • Exxon is remaining the operator of the field.
    | 1 Comment
  • Nov. 22, 2013, 11:20 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it is achieving low direct unit operating costs at the Changbei natural gas field the oil company is developing with PetroChina (PTR).
    • Shell’s direct unit operating costs is ~$1/boe, lower than similar projects, according to the general manager of the field.
    • Shell says its 2013 capex spending in China will total $1B, most going to shale gas exploration in Sichuan, the rest to other projects including Changbei.
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  • Nov. 13, 2013, 7:13 AM
    • PetroChina (PTR) is set to acquire the Peruvian oil and gas assets of Petrobras (PBR) for $2.6B.
    • PTR says the move will "help to expand the scale of [its] oil and gas cooperation in Latin America." 
    • PBR is -1.2% premarket
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  • Nov. 8, 2013, 8:11 AM
    • Oil production at the giant Kashagan field in Kazakhstan, halted since mid-October because of a dangerous gas leak, won't resume before next year, WSJ reports.
    • The prolonged stoppage is another setback for the NCOC consortium, which has invested ~$40B over more than a decade to develop one of the largest hydrocarbon discoveries of the last 30 years.
    • Ramping up production to 370K bbl/day in 2015 and eventually to 1.5M bbl/day is crucial for some members of the consortium, such as Total (TOT), which is relying on Kashagan to help offset output declines in other parts of the world.
    • In addition to TOT, the consortium includes Kazakhstan's KazMunaigas, Exxon Mobil (XOM), Royal Dutch Shell (RDS.A, [RDS.B]]) and Eni (E), which each hold a 16.81% interest; Japan's Inpex owns a 7.56% stake, and China National Petroleum (PTR) recently acquired an 8.33% tranche from ConocoPhillips.
  • Nov. 7, 2013, 10:57 AM
    • China reportedly may open oil and gas pipeline networks to third parties, a move which would break the long-term monopoly of the three state-owned enterprises - China National Petroleum (PTR -1%), Sinopec (SNP -1.2%) and Cnooc (CEO -1.1%) - on domestic oil pipe assets.
    • Given the high expense of construction of oil pipe networks, the ability of any Chinese company to construct new networks or take over operations is questionable.
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  • Oct. 29, 2013, 8:58 AM
    • China National Petroleum (PTR) is close to a deal to buy Petrobras (PBR) assets in Peru for more than $2B in a deal that may be announced as soon as next month, Bloomberg reports.
    • PBR produces ~16K bbl/day in Peru and holds stakes in exploration assets in the Maranon, Huallaga and Madre de Dios basins; it also owns a 46% stake in the Repsol-operated Block 57 in the Amazonian region, where the Kinteroni gas field holds at least 2T cf of natural gas.
    • PBR has been selling assets to help finance projects in Brazil’s deep waters.
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  • Oct. 29, 2013, 5:13 AM
    • PetroChina (PTR) Q3 net profit +19% to 29.8B yuan ($4.89B), below consensus of 30.5B yuan.
    • EPS 0.16 yuan vs 0.14 yuan a year earlier. (PR)
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  • Oct. 28, 2013, 4:47 PM
    • Brazil should not view the results of its Libra auction as a success, Raymond James analysts say.
    • With the $6.9B bonus the Brazilian government required of the winning bid, investment returns on Libra will range between 9% and 15%, depending on the rate of daily production, the firm says; under a traditional concession agreement, the field would have yielded 23% returns, assuming 12K bbl/day production rates.
    • The hefty bonus means that, at an oil price of $75/bbl, the project would require 12K bbl/day production to break even, RJ says.
    • Of the 50% owned by the winning consortium, Petrobras (PBR) will hold a 40% interest, Total (TOT) and Royal Dutch Shell (RDS.A, RDS.B) each will have 20% stake, and China's CNPC (PTR) and Cnooc (CEO) each will own 10%.
  • Oct. 23, 2013, 3:45 PM
    • Petrobras (PBR -2.9%) has sufficient funds to pay a 6B real ($2.75B) government fee for its share of operations at Brazil's Libra offshore oil field and won't need to request a fuel price increase to meet the obligation, president Maria das Graca Foster says.
    • PBR and a consortium of four other companies - Shell (RDS.A, RDS.B), Total (TOT), CNPC (PTR) and Cnooc (CEO) won the right to explore Libra, estimated to contain 8B-12B boe, but the concession will require payment of a 15B real "signing bonus" before operations begin.
    • PBR's financing capacity has come under scrutiny in recent quarters from analysts after disappointing earnings; it is expected to report Q3 earnings Friday.
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  • Oct. 23, 2013, 8:28 AM
    • Ineos says it is shutting its financially distressed petrochemicals plant at Grangemouth, Scotland, and will decide whether to restart the neighboring refinery after union workers voted against its plan to save the business.
    • Steam from Grangemouth powers the BP-operated Forties Pipeline System, which carries ~400K bbl/day of North Sea output from fields to shore, and a prolonged shutdown could block the flow of Forties and squeeze oil supply in the region.
    • PetroChina (PTR) and chemical maker Ineos are each 50% owners of the Grangemouth refinery.
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  • Oct. 22, 2013, 8:21 AM
    • Russia and China reach agreement on two huge oil and gas supply deals: Rosneft (RNFTF), the world's largest listed crude oil producer, will supply Sinopec (SNP), China's largest oil refiner, with 10M metric tons/year of oil for 10 years; and Novatek (NOVKY), Russia's largest independent natural gas producer, will deliver 3M tons/year of liquefied natural gas from its Yamal LNG project to China National Petroleum (PTR) for 15 years.
    • Russia is looking increasingly to Asia for customers and funding to help develop its vast energy reserves, with demand in China and elsewhere in Asia soaring while it shrinks in other industrialized countries.
    | 1 Comment
  • Oct. 21, 2013, 2:05 PM
    • Petrobras (PBR +4.9%) teams with Shell (RDS.A, RDS.B), Total (TOT), China National Petroleum (PTR) and Cnooc (CEO) to place the sole and apparently winning bid for Brazil's Libra oil field, as fierce protests outside the auction area appear to have forced the government into giving the business to the local firm.
    • In the only offer made, PBR would own a 40% stake, with Shell having 20%, Total 20% and each of the Chinese companies 10%.
    • The group will work with PBR, which was required to operate the block with at least a 30% stake, to produce from estimated reserves of 8B-12B barrels of recoverable resources.
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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.