【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

China to Ease Ownership Rules on Oil Exploration, City Gas

China is easing foreign access to a range of industries including oil, mining and city gas pipelines as the government follows through on pledges to open up to overseas investors.China will scrap the need for joint ventures in oil and gas exploration, and for domestic control of gas networks in cities with more than 500,000 people, the National Development and Reform Commission said on its website Sunday. The statement formed an update to the commission’s so-called negative list of industries where overseas investors are restricted or banned.The new rules take effect July 30. The commission sa

【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

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

Shanghai crude oil futures close higher

Crude oil futures closed higher Friday at the Shanghai International Energy Exchange.The most active crude oil contract for June delivery was up 1.9 yuan (about 28 U.S. cents) to close at 475.9 yuan a barrel.On friday, the total trading volume for five listed crude oil futures contracts on the exchange was 191,260 lots, with a turnover of 90.77 billion yuan.China launched the crude oil futures trading, which is open to overseas investment, on March 26 last year.

China Crude Futures 2019-04-23

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

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

Saudi Arabia strikes $10 bln China deal, talks de-radicalisation with Xi

Saudi Crown Prince Mohammed bin Salman cemented a $10 billion deal for a refining and petrochemical complex in China on Friday, meeting Chinese President Xi Jinping who urged joint efforts to counter extremism and terror.The Saudi delegation, including top executives from state-owned oil company Saudi Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India’s refining industry.Saudi Arabia signed 35 economic cooperation agreements with China worth a total of $28 billion at a joint

China Oil 2019-02-26

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

Sinopec Ready To Pour $3 Billion In Iran Oil

China’s largest crude oil refiner, Sinopec, has offered US$3 billion to Iran’s state oil company, NIOC, to jointly expand the development of a major field in Iran, the Wall Street Journal reports, citing sources in the know.The sources, who wished to remain unnamed, said the Chinese company considered the offer safe from the sanctions the United States reimposed on Iran last November because the initial deal for the development of the Yadavaran field was inked back in 2007.The offer, according to the Wall Street Journal, was made last month but it is only now coming to light as media and analy

China's Sinopec says losses at trading arm Unipec under audit

Sinopec on Friday said outside auditors have started reviewing losses at its trading arm Unipec.Sinopec said in a filing to the Shanghai Stock Exchange that it had found problems with Unipec’s hedging activities and that the trading subsidiary suffered losses due to the decline in crude oil prices.Sinopec suspended two top Unipec officials and is evaluating details related to certain crude oil transactions that have incurred losses, Reuters reported on Dec. 27.Unipec President Chen Bo, an industry veteran who helped the company become one of the world’s largest oil traders, has been suspended,

Sinopec 2019-01-07

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 National Petroleum Corp may cut Kunlun bank's ties to Iran: sources

China National Petroleum Corp (CNPC) [CNPC.UL] may stop its banking unit from conducting most of its Iranian-related financial services because of concerns over U.S. sanctions, two persons with knowledge of the matter told Reuters.Bank of Kunlun, which has been the main official channel for money flows between China and Iran since before the last round of sanctions which started in 2012, is majority owned by CNPC’s listed financial arm CNPC Capital (000617.SZ).U.S. President Donald Trump in May ordered sanctions to be reimposed after withdrawing from a 2015 nuclear accord with Iran that ended

CNPC 2018-12-24

Chinese Oil-Field-Services Firm to Pay $3.4 Million to Settle Sanctions Violations

U.S. authorities imposed about $3.4 million in penalties on a Chinese oil-field-services firm, alleging it schemed to evade U.S. export controls and sanctions on Iran.Yantai Jereh Oilfield Service Group Co. allegedly used third-party companies in China and the United Arab Emirates in an attempt to export to Iran oil field equipment containing U.S. components on at least 11 occasions. Two of the shipments were seized by U.S. Customs and Border Protection, the U.S. said.Attempts to reach the company, which is based in Yantai, China, were unsuccessful.Yantai Jereh allegedly knew its exports to Ir

China Investment 2018-12-13

Chinese overseas oil and gas acquisitions could hit 10-year low in 2018

China is on course to make fewer overseas oil and gas acquisitions and to have spent less on them this year than it has in a decade, the South China Morning Post reported on Monday.Volatile oil prices and growing scrutiny over Chinese investments are making it more challenging for Chinese companies to strike deals, the paper said. Fourteen deals with a combined value of $2.36 billion have been concluded so far this year.

China Investment 2018-12-13

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