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.
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.
Oct. 29, 2013, 5:13 AM
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.
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.
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.
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.
Oct. 18, 2013, 5:51 PM
- Athabasca Oil (ATHOF.PK) was today's top decliner on the Toronto Stock Exchange, plunging 10% after a court ruled an aboriginal group could appeal an Alberta regulator's approval of the company's Dover oil sands project.
- The company expects Dover to create $5.2B annually in economic activity, and it had planned to proceed with the sale of its stake in the project to PetroChina (PTR) following the regulator’s approval in August.
- The decision significantly increases the risk regulatory delay and is a major negative for Athabasca, an RBC analyst says.
Oct. 18, 2013, 8:27 AM
- Russia's Rosneft (RNFTF.PK) and China National Petroleum (PTR) agree to form a joint venture on exploration and production in eastern Siberia, an important step before negotiating detailed terms.
- Rosneft will own 51% of the venture, with CNPC holding 49%; the companies will develop an oilfield that Rosneft gained full control of this week by consolidating 100% of the Taas-Yuryakh oil firm.
- Russia's top crude producer agreed in June to send 365M tons of oil to China over the next 25 years, in a deal valued at $270B.
- Some analysts doubt Rosneft has enough resources to boost supplies to China to the agreed level, but CEO Igor Sechin says Rosneft and Russia can meet the challenge.
Oct. 16, 2013, 2:37 PM
- Scotland's 200K bbl/day Grangemouth oil refinery becomes the latest casualty in the decline of Europe's refining industry, as its operator says it will remain closed until further notice.
- The move could affect the flow of North Sea crude oil because steam from the refinery and neighboring petrochemical plant powers part of the Forties Pipeline System, a vital conduit that moves ~45% of total North Sea output from fields to shore.
- The refinery is owned jointly by chemical maker Ineos and PetroChina (PTR).
- ETFs: BNO, UOIL, DOIL.
Oct. 16, 2013, 7:57 AM
- The Chinese government is investigating the former head of PetroChina's (PTR) Indonesian operations, Reuters reports, just weeks after authorities launched a corruption investigation into other former senior executives at the state oil firm.
- PTR removed the executive from his post as general manager of its Indonesian unit several weeks ago amid an unspecified official probe into the executive, three Chinese oil industry sources say.
Oct. 15, 2013, 11:51 AM
- Korea Gas says it may sell part of its 20% stake in the LNG Canada natural gas project as part of an effort to reorganize its finances.
- LNG Canada is a joint venture involving Kogas, Royal Dutch Shell (RDS.A, RDS.B), Mitsubishi and PetroChina (PTR) that plans to build and operate a liquefied natural gas export terminal in Kitimat, British Columbia.
- South Korea's state energy firms have taken on massive debt in recent years as part of their quest to acquire overseas resources to bolster the country's energy security, but the government now is looking to sell some of those assets.
Oct. 14, 2013, 3:22 PM
- The downside of the U.S. natural gas boom is that, at historically low prices of ~$3.75/MMBtu, "some of the levered players are struggling to cover their debt service and their obligations to drill more holes under their leases," Jim Chanos tells CNBC.
- The boom in nat gas supplies, and the subsequent low prices, is "bad news for global coal as more and more countries switch over to natural gas," he adds.
- Chanos is short two different groups of the major oil companies: the big publicly traded majors like Exxon (XOM) - "their problem is finding costs" in reserves like deepwater drilling and the Arctic - and the nationalized companies such as Petrobras (PBR), Ecopetrol (EC) and PetroChina (PTR), which he says really are "political venues."
- ETFs: FCG, GASL, GASX.
Oct. 8, 2013, 11:42 AM
- Kazakhstan's giant Kashagan oilfield is pumping 61K bbl/day after resuming production halted by an accident last month, according to the head of Kazakh state oil and gas firm KazMunaiGas.
- An international consortium developing the huge reservoir estimated to contain 9B-13B recoverable barrels of oil has to achieve what is called "commercial output" of 75K bl/day this month to meet contractual obligations.
- KazMunaiGas, ExxonMobil (XOM), Royal Dutch Shell (RDS.A, RDS.B), Eni (E) and Total (TOT) each hold 16.81% stakes in Kashagan, China National Petroleum (PTR) acquired 8.33% this year, and Japan's Inpex owns 7.56%.
Oct. 2, 2013, 2:59 PM
- Brazil's National Petroleum Agency says all 11 companies registered for the Oct. 21 auction of the Libra offshore oil field have qualified to participate in the sale.
- Brazil had previously approved eight firms, but was still reviewing technical and legal documents for France's Total (TOT), Colombia's Ecopetrol (EC) and the Brazilian unit of Portugal's Galp Energia (GLPEF.PK, GLPEY.PK).
- Also approved to bid: Chinese oil companies Cnooc (CEO) and China National Petroleum (PTR); China's Sinopec (SNP) also registered via its joint venture with Spain's Repsol (REPYY.PK, REPYF.PK); Malaysia's Petronas; Japan trading firm Mitsui (MITSY.PK, MITSF.PK); India's ONGC; Royal Dutch Shell (RDS.A, RDS.B) and Brazil's own Petrobras (PBR, PBR.A).
- Officials estimate the 11 companies could form up to three potential bidding groups to compete in the auction.
- Several oil majors are not participating in bidding on Libra, whose development is expected to be pricey.
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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