Seeking Alpha

China Petroleum & Chemical Corporation (SNP)

  • Fri, Oct. 9, 9:45 AM
    • Malaysian state-run energy company Petronas renews its pledge to move ahead with its planned C$36B liquefied natural gas shipping export project on Canada’s Pacific coast, despite the current market volatility for oil and gas.
    • Petronas holds a 62% interest in the Pacific Northwest LNG project, with several partners including China's Sinopec (NYSE:SNP).
    • Analysts are skeptical of Canada’s ability to deliver LNG export projects this decade, as the global market is entering a period of oversupply and demand is slowing in Asia just as the oil slump has taken down prices for LNG.
    • The Petronas export terminal is among ~20 projects under consideration in British Columbia - which include stakes by the likes of Shell (RDS.A, RDS.B), Chevron (NYSE:CVX) and Exxon (NYSE:XOM) - and none have started construction.
    | Fri, Oct. 9, 9:45 AM | 12 Comments
  • Thu, Oct. 8, 9:11 AM
    • China has nearly tripled the size of proven reserves at its Fuling project, by far the country's largest shale gas find, according to a Sinopec (NYSE:SNP) official.
    • The Jiaoshiba block of the project in southwest China reportedly has 273.8B cm of newly proven reserves, which would take total proven reserves at Fuling to 380.6B cm, giving it the potential to have an annual production capacity of 10B cm by year-end 2017.
    | Thu, Oct. 8, 9:11 AM | Comment!
  • Thu, Sep. 24, 8:11 AM
    • China's government reportedly plans to create a new crude oil and liquefied natural gas pipeline transportation company by stripping these operations from its three largest oil firms, China National Offshore Oil (NYSE:CEO), China National Petroleum (NYSE:PTR) and Sinopec (NYSE:SNP).
    • The move is said to be aimed at reducing the firms' monopoly in the oil and gas market and improving competition; for example, CNPC's PetroChina arm controls more than 80% of China's natural gas grid.
    • The report from state-backed China Securities Journal says the plan has been set and is now being studied and implemented in steps.
    | Thu, Sep. 24, 8:11 AM | Comment!
  • Wed, Sep. 9, 9:17 AM
    | Wed, Sep. 9, 9:17 AM | 6 Comments
  • Tue, Sep. 8, 9:14 AM
    | Tue, Sep. 8, 9:14 AM | 2 Comments
  • Thu, Sep. 3, 11:49 AM
    • Russia's Rosneft (OTC:RNFTF) has signed documents with China worth more than $30B to jointly develop oil and gas fields in Russia, company president Igor Sechin says.
    • Under the agreement, Sinopec (NYSE:SNP) has the right to buy a 49% stake in its subsidiaries that hold the exploration licenses for the Russkoye and Yurubcheno-Tokhomskoye fields, part of an agreement on cooperation within the proposed joint development of the two oil fields.
    • Rosneft also says it reached a preliminary agreement for the potential acquisition of a 30% stake in a ChemChina subsidiary.
    | Thu, Sep. 3, 11:49 AM | 1 Comment
  • Mon, Aug. 31, 7:12 AM
    • Canadian Oil Sands (OTCQX:COSWF) says it has halted crude oil production at the Syncrude oil sands project after a fire damaged equipment at its processing facility in northern Alberta on Saturday.
    • COSWF says the main coker conversion units were not damaged and Syncrude continues to operate, but it has suspended synthetic crude oil production and is currently developing a recovery plan.
    • The company does not estimate the volume or value of lost production, but Syncrude’s synthetic crude output averaged 207.7K bbl/day in Q2.
    • COSWF holds a 37% stake in Syncrude, and six other companies own the rest, including lead operator Exxon Mobil (NYSE:XOM) unit Imperial Oil (NYSEMKT:IMO), Suncor Energy (NYSE:SU), Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO) subsidiary Nexen.
    | Mon, Aug. 31, 7:12 AM | 8 Comments
  • Wed, Aug. 26, 8:40 AM
    • Sinopec (NYSE:SNP) says its H1 net profit fell 22% Y/Y to 25.39B yuan ($3.96B) from 32.5B yuan a year earlier, as sharply lower crude oil prices hurt upstream earnings.
    • SNP's total H1 oil and gas production fell 1.8% Y/Y to 233M boe, driven lower by falling domestic crude production; H1 refinery throughput rose 2.7% to 118.9M metric tons.
    • "Upstream performance remains an area of concern with declining domestic oil and gas production,” says Bernstein's Neil Beveridge, but he adds that the company should benefit from improved downstream performance due to lower feedstock prices for the rest of the year.
    | Wed, Aug. 26, 8:40 AM | Comment!
  • Wed, Aug. 12, 10:15 AM
    • Syncrude is facing an environmental protection order following the deaths of 30 great blue herons at an abandoned sump pond at its Mildred Lake mine site near Fort McMurray, Alberta.
    • Although bird deterrents were working elsewhere on the mine site, Syncrude says no such equipment was in operation at the sump.
    • Syncrude was fined $3M in 2008 when more than 1,600 ducks died after they landed on a company tailings pond.
    • Canadian Oil Sands (OTCQX:COSWF) owns 37% of Syncrude, with stakes also held by lead operator Imperial Oil (NYSEMKT:IMO), Suncor (NYSE:SU), Murphy Oil (NYSE:MUR), Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO).
    | Wed, Aug. 12, 10:15 AM | 13 Comments
  • Mon, Aug. 3, 12:24 PM
    • PetroChina (PTR -2.3%) has turned into a speculative bet on how much money the Chinese government is plowing into the stock market that day, resulting in a surge in volatility to the highest level among the world’s 100 biggest companies and topping 95% of the stocks in the Russell 2000 index, according to a Bloomberg analysis.
    • PTR’s top weighting in the benchmark Shanghai Composite Index makes it an ideal target for funds trying to influence the broader market, the report says.
    • PTR shares have shed 25% in the past three months, while Sinopec (SNP -1.5%) and Cnooc (CEO -1.2%) have lost a respective 22% and 29% during the period.
    | Mon, Aug. 3, 12:24 PM | Comment!
  • Fri, Jul. 17, 5:54 PM
    • As exploration costs fall, Morgan Stanley's emerging markets analysts see the most upside for China's Cnooc (NYSE:CEO), Argentina's YPF and India's ONGC.
    • Cnooc boasts the third-largest production growth rates among emerging markets E&P players, the highest realized oil prices and lowest costs within China's top three oil companies, and better production and development know-how than PetroChina (NYSE:PTR) and Sinopec (NYSE:SNP) on offshore reserves, Stanley says.
    • YPF's current valuation is attractive due to the near-term growth of the existing asset base, leaving a sizable unconventional upside as a free option, and forex pass-through in fuel prices has been working over the past five months and protecting margins, the firm says.
    • Stanley suggests avoiding Gazprom (OTCPK:OGZPY), Ecopetrol (NYSE:EC) and Petrobras (NYSE:PBR), which it calls its least favorite stock as the company will continue to generate negative free cash flow through 2018 and cash flows primarily will service bondholders to the detriment of equity holders.
    | Fri, Jul. 17, 5:54 PM | 1 Comment
  • Wed, Jul. 8, 10:19 AM
    • Sinopec (SNP -1.1%) says it expects an 11-fold Q/Q increase in its net profit during Q2, which has halted the shares in Hong Kong trading.
    • In a filing with the Shanghai stock exchange, SNP forecasts Q2 net profit attributable to equity holders would jump more than 1,000% from the 2.17B yuan (~$350M) in Q1.
    • Even with the projected huge increase, Q2 net profit still would come in below the 31.43B yuan (~$5B) earned in the same quarter last year.
    | Wed, Jul. 8, 10:19 AM | Comment!
  • Tue, Jul. 7, 12:27 PM
    • China's crude oil production looks set to rise this year from a record 4.2M bbl/day in 2014 as new production from Cnooc (NYSE:CEO) helps to counter reductions from its two bigger domestic rivals, PetroChina (NYSE:PTR) and Sinopec (NYSE:SNP).
    • While there is no official Chinese production outlook, information from the biggest state oil companies indicates China's output will rise slightly in 2015, largely due to increased production from Cnooc.
    • China raised its output in the first five months of this year by 1.8% Y/Y to 4.25M bbl/day, vs. growth of just 0.1% over the same period in 2014.
    | Tue, Jul. 7, 12:27 PM | Comment!
  • Wed, Jul. 1, 4:59 PM
    • Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO), which entered Brazil’s giant deepwater oilfields two years ago, are now looking to increase their presence as Petrobras (NYSE:PBR) sells assets to pay down debt, Bloomberg reports.
    • The Chinese companies, as well as Royal Dutch Shell (RDS.A, RDS.B) and Statoil (NYSE:STO) are said to be among companies interested in buying stakes in Brazil's pre-salt offshore exploration blocks, and are preparing for bids to be presented as soon as this month.
    • PBR removed the Carcara and Jupiter pre-salt discoveries from its schedule of projects to start producing by 2020, indicating that the fields may be for sale, BofA said in a recent research report.
    | Wed, Jul. 1, 4:59 PM | Comment!
  • Tue, Jun. 16, 8:29 AM
    • Sinopec (NYSE:SNP) will delay by several years a nearly $1B oil storage terminal in Indonesia, touted to be Southeast Asia's largest, due to slow demand for tank space, Reuters reports, citing industry sources.
    • The 2.6M cm storage terminal in Indonesia's Batam free trade zone south of Singapore initially was expected to become operational by mid-2016, but construction has yet to begin and the facility will not be ready for at least another 3-5 years, according to the report.
    • Reuters reported in 2012 that SNP and its partner would spend $850M on the project.
    | Tue, Jun. 16, 8:29 AM | Comment!
  • Thu, Jun. 11, 8:53 PM
    • Petronas and its Asian partners give a conditional final investment decision to move forward with the Pacific Northwest LNG project to be built near Prince Rupert on Canada's British Columbia coast.
    • The consortium says the project still needs British Columbia lawmakers to endorse a deal on royalties and taxes that the government signed, and to pass a federal environmental review.
    • But Canada’s environment regulator issues another delay, saying it is pausing its review as it requests further information from the group on plans to mitigate damage to a salmon spawning habitat.
    • Malaysia's Petronas holds a 62% interest in Pacific Northwest LNG, and its partners include China's Sinopec (NYSE:SNP) with 10%.
    • The export terminal is among 19 under consideration in the province - which include stakes by the likes of Shell (RDS.A, RDS.B), Chevron (NYSE:CVX) and Exxon (NYSE:XOM) - to ship western Canadian gas to growing energy markets in Asia.
    | Thu, Jun. 11, 8:53 PM | 5 Comments
SNP vs. ETF Alternatives
Company Description
China Petroleum & Chemical Corp is engaged in the oil & gas and chemical operations & businesses, including exploration, development, production, refining, transportation, storage & marketing of crude oil & natural gas & production of chemicals.
Country: China