【ECF News】Oil & gas exploration and development in China: why is it difficult for new entrants?

Oil & gas exploration and development is a high-risk industry. Hundreds of millions could be invested with nothing coming out. Therefore, engaging in oil and gas exploration and development requires sufficient financial strength and anti-risk ability, in addition to the corresponding technology and experience. In these respects, many new entrants are seriously inadequate compared with the oil majors.As China's oil and gas system reform continues to deepen, the opening door to oil and gas exploration and development is also widening.From the Ministry of Natural Resources's (formerly the Ministr

【ECF News】Joint operations - the new picture for China oil & gas development

Following the signing of the strategic alliance cooperation agreement between PetroChina and Sinopec on June 22 and the signing of another joint research framework agreement on Monday, Sinopec and CNOOC signed a new cooperation framework agreement Wednesday.In the past three months, PetroChina, Sinopec and CNOOC have continued to carry out large-scale cooperation in onshore and offshore oil and gas basins, indicating that the domestic upstream exploration and development has ushered in a new change.Sinopec & CNOOC: Offshore CooperationOn July 10, PetroChina and CNOOC (China) Co., Ltd., a subsi

【ECF News】Zhang Wei was elected as vice chairman of PetroChina

At PetroChina's Annual General Meeting for the Year 2018 on Jun 13, Mr. Zhang Wei as Vice Chairman and non-executive Director of PETROCHINA COMPANY LIMITED. Zhang Wei, aged 50, is currently a board member and general manager of China National Petroleum Corporation (CNPC Group). Mr. Zhang is a senior economist with a master's degree. He has nearly 25 years of working experience in energy and chemical engineering.

SOEs CNPC 2019-06-14

PetroChina raising gas prices ahead of pipeline reshuffle

PetroChina is bucking normal practice and raising its wholesale natural gas prices during the weak-demand spring season, several sources said, preparing for the coming consolidation of China’s pipeline assets and trying to recoup huge fuel import losses.The increases from PetroChina - which supplies more than 70 percent of China’s gas - come as spring brings warmer temperatures, when demand and prices typically fall.PetroChina is also under pressure to recoup continuing losses from its gas import business due to high input costs versus government-capped domestic prices, sources with knowledge

Chinese energy giant Sinopec defends 41 per cent increase in oil and gas exploration budget, says guided by market forces

China Petroleum & Chemical, or Sinopec, one of the country’s Big Three state-backed oil and gas producers and the world’s largest oil refiner, sought to allay concerns it was putting an order by Beijing to raise domestic output ahead of profitability.“One of the central government’s requirements for economic reforms is that market forces must play a decisive role when deciding resources allocation,” Dai Houliang, its chairman, said on Monday. “Corporate investment must be based on this principle, and be economically efficient.”His comments came after the company on Friday unveiled an oil and g

Sinopec 2019-05-17

China Invests In Game-Changing Arctic LNG Project

Russia’s second largest natural gas producer, independent player Novatek, has signed up key participation from two state-owned Chinese oil majors in its massive Arctic LNG 2 project. The deals were inked last week at the Second Belt and Road Forum for International Co-operation held in China. This cements Novatek’s position as Russia’s leading liquefied natural gas (LNG) developer, moving it a step ahead of the country’s two state-backed companies, Rosneft and Gazprom. China National Offshore Oil Corp. (CNOOC) and China National Oil and Gas Development Co. (CNODC), a unit of China National Pet

China Acquires 20 Percent Stake in Novatek’s Latest Arctic LNG Project

Russia’s largest private natural gas company, Novatek, secured vital funding for its Arctic LNG 2 plant. The project will be the company’s second liquified natural gas (LNG) production facility in the Arctic following on the heels of the Yamal LNG plant. Construction began earlier this spring on the Gydan Peninsula, just across the Ob delta from the Yamal LNG project on the Yamal peninsula.Building on the success of that first project, Novatek is thus far sticking with the same project partners. As the company announced, the China National Petroleum Corporation (CNPC) and the China National Of

China Investment 2019-04-30

CNPC overseas equity oil, gas output up 10 pct in Q1

Overseas equity of oil and gas production of China National Petroleum Corporation (CNPC) rose 10 percent year on year in the first quarter of 2019.Production came in at 26.09 million metric tonnes of oil equivalent in Q1, according to the international branch of CNPC, the country's largest oil and gas producer and supplier.The stable growth of oil and gas output is due to efforts made in enhancing quality, lowering cost and increasing efficiency, CNPC said.The listed firm has announced to focus on high-quality development of its overseas oil and gas operations, and reach its annual targets.The

CNPC 2019-04-22

Kunlun Energy aiming to complete oil and gas assets disposal by year end to focus on distribution

Kunlun Energy is aiming to complete the disposal of its oil and gas production assets by the end of this year to sharpen its focus as the listed natural gas distribution unit of oil and gas giant PetroChina, its chairman said on Friday.Huang Weihe said it will take time to execute the planned assets sale since it involves various jurisdictions, including in China, Thailand, Peru, Oman, Kazakhstan and Azerbaijan.“We are striving to complete the sale of some, if not all, of our upstream production assets before the end of this year,” he told reporters after the company’s annual shareholder meeti

China Investment 2019-04-18

Ukraine's Naftogaz, China's CNPC discuss prospects for cooperation

Ukraine's state-run energy company Naftogaz and China National Petroleum Corporation (CNPC) have discussed prospects for their cooperation in energy sector, the press service of the Ukrainian company said on Friday.A meeting between the senior executives of the two companies took place during the recent visit of Naftogaz chairman Andriy Kobolev to Beijing, Naftogaz said in a statement.During the talks, the two sides discussed practical steps for the start of cooperation between Naftogaz and CNPC -- increasing hydrocarbon production in Ukraine and supplying the latest equipment and technologies

CNPC 2019-04-15

China's ENN to scrap deal for Toshiba's U.S. LNG business

China’s ENN Ecological Holdings Co said on Thursday it would scrap a deal to buy Toshiba’s U.S. liquefied natural gas business due to a failure to obtain approvals from shareholders and a U.S. panel that monitors foreign investments.The cancellation is a new blow to Toshiba, the once-mighty Japanese conglomerate, as it must look for a new buyer for the business that it previously said could potentially cause losses as much as 1 trillion yen ($9 billion).A failure to find a buyer could derail Toshiba’s recovery from the fallout of the bankruptcy of its U.S. nuclear power unit Westinghouse.In a

ENN 2019-04-12

PetroChina profits surge over higher oil prices, gas demand

PetroChina, China's largest oil and gas producer, said Thursday its net profits surged over 130 percent last year due to higher global oil prices and strong natural gas demand domestically.Net profits attributable to equity holders came in at 52.6 billion yuan (about 7.9 billion U.S. dollars) in 2018, up 130.7 percent year on year, according to the company's financial results in line with international financial reporting standards.Revenue rose 16.8 percent year on year to 2.35 trillion yuan, according to the results.The company attributed the growth to factors including increased global oil p

CNPC 2019-03-22

China's CNOOC more than doubles 2018 net profit on oil and gas sales

China's state-run oil company CNOOC Ltd. more than doubled its 2018 net profit from the previous year on higher oil and gas sales, with higher gas output offsetting declines in crude oil production levels, it said Thursday.The company's net production for 2018 rose to 475 million boe (1.3 million boe/d), from 470.2 million boe in 2017. However, its crude production declined by 1.3% to 383.5 million boe/d, offset by a 12% increase in gas production to 530.2 Bcf.CNOOC's net profit for the year ended 31 December 2018 rose to Yuan 52.7 billion ($7.9 billion) from Yuan 24.7 billion ($3.7 billion) a

CNOOC 2019-03-22

CNOOC'S gas and power veteran moves to China's ENN

Gas and power veteran at China National Offshore Oil Corp (CNOOC) Zheng Hongtao has moved to China's ENN Group as president of its energy trading and marketing division, according to sources and his LinkedIn profile.Zheng was most recently executive vice president at CNOOC's gas and power trading and marketing division and has been with the company since at least 2008, according to his LinkedIn profile.His move was effective from January this year, according to the profile.Zheng, ENN and CNOOC did not immediately respond to a Reuters request for comment.ENN Group's senior vice president and h

CNOOC 2019-01-29

China’s record 2018 oil, gas imports may be cresting wave as industry slows down

Amid increasing signs of China’s industrial slowdown in 2019, data this week showing record oil and natural gas imports likely indicates a country at peak energy growth, with its thirst set to wane as the slowdown bites.China’s record intake for both crude oil and liquefied natural gas (LNG) in 2018 cemented its status as the world’s largest oil and second-largest LNG importer.But heading into this year, China’s trade war with the United States is taking a toll.On Tuesday, the National Development and Reform Commission, China’s top economic planner, warned that economic pressure will impact th

Chinese CNOOC Plans Highest Spending In Five Years

CNOOC, China’s largest offshore oil producer, plans its capital expenditure for 2019 to be the highest since 2014 and to increase drilling and development of resources at home after President Xi Jinping ordered companies to boost domestic production.CNOOC said on Wednesday that it has budgeted total capital expenditure at US$10.3 billion-US$11.8 billion (70 billion to 80 billion Chinese yuan) for 2019. Exploration, development, and production capex is set at around 20 percent, 59 percent, and 19 percent, respectively, of the total, the company noted.The capex plan for 2019 is the highest in fi

CNOOC 2019-01-24

Senior exec of China's ENN Group quits to join Pacific Oil & Gas

A senior executive with China’s private energy company ENN Group is leaving the firm to join independent resource developer Pacific Oil and Gas, people with direct knowledge of the move told Reuters.Ma Shenyuan, formerly a senior vice president of ENN Group and head of its international gas trade, has resigned from ENN and is expected to start his new role as chief of China operation at Pacific Oil & Gas from the end of this month.Ma declined to comment on his move. ENN Group didn’t immediately comment.Sources said Ma will be in charge of Pacific Oil & Gas’ China business, which covers natural

China Natural Gas 2019-01-23

China, Japan keen to invest in gas

Chinese Sichuan Chuanzhong Gas Investment Co Ltd has expressed its interest to investment in Pakistan’s natural gas exploration and development sector.A visiting delegation of the company on Wednesday held a meeting with Federal Minister for Petroleum Ghulam Sarwar Khan and expressed its willingness, saying that the company is ready to invest in the exploration and production of natural gas.The company has also financed gas exploration in China and India, and now interested in investing in Pakistan, it said.Khan said that the government of Pakistan will ensure favourable atmosphere to foreign

China's Daqing Oilfield sees record output from overseas operations

Daqing Oilfield Co. Ltd., a subsidiary of China's largest oil producer PetroChina, reported a record-high output of 6.17 million tonnes of oil equivalent from its overseas operations in 2018.The firm has been expanding its overseas businesses since it entered overseas markets in 1998. Last year, it invested in the Halfaya oilfield in Iraq.So far, it has launched projects in a total of 26 countries and regions.The oilfield's domestic facilities churned out 32.04 million tonnes of crude oil and 4.34 billion cubic meters of natural gas last year.Daqing Oilfield, the largest oilfield run by PetroC

Global Market 2019-01-07

China's LNG producer price surges

The producer price for liquefied natural gas (LNG) in China surged to a 10-month high amid rising demand in the winter heating season.The price, which measures costs for LNG at the factory gate, stood at 5,247 yuan (about 762 U.S. dollars) per tonne Tuesday, the highest since Feb. 14 this year, data from the Shanghai Petroleum and Natural Gas Exchange showed Wednesday.That marked a 26 percent rise compared with Dec. 6.To clear up the air, China has been encouraging the use of natural gas instead of coal for winter heating, boosting demand for clean fuel.Authorities have been taking measures to

China LNG 2018-12-21

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