- To gain hegemony over shale, PetroChina would have to go through its main rival: Sinopec.
- China is looking to cash in on the world’s largest shale gas reserves giving PetroChina the incentive to augment its own profits.
- The company is planning on drilling 154 new shell wells in Sichuan in the next couple of years.
Can Natural Gas Development Drive PetroChina Further?
- PetroChina controls extensive natural gas reserves that can feed China's seemingly bottomless appetite for this energy source.
- PetroChina is facing rising production costs and a government that is heavily involved at all levels of the business, including determining the prices it can charge.
- PetroChina is expected to grow its EBITDA at a rate 50% to 100% greater than most multinational energy companies, arguably justifying an EBITDA premium (5.5x) that supports a $140+ target.
- Gazprom and CNPC are set to sign a deal that will result in Gazprom supplying China with 38 bcm of gas annually by 2018.
- This is in addition to a 2011 deal that called for Gazprom to provide 30 bcm of gas annually by 2015.
- This will result in substantial increases to Gazprom's revenue once it takes effect.
PetroChina's String Of Acquisitions Moving Towards Iraq
PetroChina Demonstrates Solid Growth in Investment Value
PetroChina Offers Attractive Value for Patient InvestorsKurt Wulff • Apr. 26, 2010
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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
- ETFs: FXI, EWH, PGJ, YINN, GXC, FXP, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, FCA, CN, CHIE, EWHS, FCHI, ASHS, CNXT, CHNA, KBA, FHK
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.
- ETFs: FXI, RSX, PGJ, RUSL, GXC, YINN, FXP, RUSS, ERUS, YANG, CHIX, MCHI, XPP, RBL, YAO, YXI, CHXF, FCA, CHIE, CN, RUDR
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.
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.
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.
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.
Aug. 29, 2014, 2:45 PM
- Athabasca Oil (OTCPK:ATHOF) says it has closed the sale of its 40% interest in the Dover oil sands project to PetroChina (NYSE:PTR) for $1.18B.
- Delays in completing the transaction have weighed on the stock price, and Athabasca says it can now focus on other projects and start a new chapter in its history.
- Shares are halted in Toronto.
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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