Today, 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.
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.
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. 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).
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.
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.
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.
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.
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.
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.
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.
Wed, May 13, 10:14 AM
- The Chinese government is looking at stripping Sinopec (SNP -0.7%) and PetroChina (PTR -0.4%) of their oil and gas pipelines and spinning off the assets into independent businesses, Bloomberg reports.
- The separation of the pipeline units would be part of Pres. Xi Jinping’s reforms to allow markets a more decisive role in the economy.
- CNPC and its listed arm PTR is China’s biggest owner of pipelines, controlling ~77K km, while China Petrochemical and its listed unit SNP is next with more than 30K km; the assets could be worth as much as $300B, according to an estimate by Bernstein's Neil Beveridge.
Wed, May 6, 9:39 PM
- Plans for a multibillion-dollar IPO of a vast network of gas stations owned by China’s Sinopec (SNP, SHI) - which could have been the biggest in Asia this year - is not likely to take place until 2016 at the earliest because of the retirement of Chairman Fu Chengyu, WSJ reports.
- Fu was considered the driver behind the plan to list the business, Sinopec Marketing Co., in a Hong Kong offering that had been expected to raise $5B-$10B.
- A public offering, when it happens, could prove attractive: Sinopec Marketing’s 30K gas stations, 23K of which have convenience stores attached to them, are dotted across China's east and south and account for 60% of the country’s market for oil products for cars.
Mon, May 4, 4:23 PM
- Chinese oil industry officials and government advisers are pushing back against a proposal that could combine China’s already massive energy companies into new national champions, WSJ reports.
- The merger discussions, which are preliminary and ongoing, reportedly have been met with skepticism from economists who say China needs more competition to nurture long-term growth and rebalance the economy.
- One option being studied by China involves combining CNPC (NYSE:PTR) and Sinopec (NYSE:SNP), while others include merging Cnooc (NYSE:CEO) and Sinochem, as China's leadership views bigger and stronger state companies as key to the country’s reasserting its prominence in the world.
Mon, May 4, 8:49 AM
- Sinopec (NYSE:SNP) confirms that Chairman Fu Chengyu is retiring, to be replaced by Wang Yupu, deputy head of the Chinese Academy of Engineering.
- Also, as part of a broad executive shake-up in China's energy industry, former CNPC (NYSE:PTR) exec Wang Yilin is expected to Cnooc (NYSE:CEO) and take over as CNPC chairman, to be replaced by the company’s president, Yang Hua.
- Fu, the most recognized exec in the Chinese energy industry, became SNP chairman in 2011 after more than 30 years with Cnooc.
- Morgan Stanley writes that "investors are likely to turn more cautious on the reform outlook for Sinopec - they don’t know whether the new management team will be as aggressive as Chairman Fu in driving reform."
Thu, Apr. 30, 12:19 PM
- Sinopec (SNP -2.5%) Chairman Fu Chengyu, who has run Asia’s biggest refiner since 2011, is planning to retire, Bloomberg reports.
- The news is said to have been announced at an internal meeting today, but it has not been made public; Fu's replacement is believed to be Wang Yupu, deputy head of the Chinese Academy of Engineering.
- The move comes a day after SNP announced a surprise Q1 profit of 2.17B yuan ($350M) despite lower crude oil prices; SNP had enjoyed a 14.1B yuan profit in the year-ago quarter, but most analysts had expected another loss after posting a loss in Q4.
- SNP cut Q1 operating costs by 23% Y/Y to 473B yuan, while oil and gas output fell 1% to 117.8M boe.
- "Sinopec did a nice job in cost control... the cost advantage [should] help them if crude begins to rebound later this year,” says a Hong Kong-based analyst at Bocom International.
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