EUR/USD 1.09231
0.373%
Gold 2994.89
0.367%
Oil 67.182
0.443%
USD/JPY 148.649
0.003%
GBP/USD 1.29911
0.434%
GBP/JPY 193.114
0.437%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Germanys DAX30 index closed up 214.01 points, or 0.93%, at 23,153.40 points on March 17 (Monday); Britains FTSE 100 index closed up 47.35 points, or 0.55%, at 8,679.68 points on March 17 (Monday); Frances CAC40 index closed up 44.52 points, or 0.55%, at 8,072.80 points on March 17 (Monday); Europes The STOXX 50 index closed at 5,446.35 points on Monday, March 17, up 42.17 points, or 0.78%; the Spanish IBEX 35 index closed at 13,147.00 points on Monday, March 17, up 159.80 points, or 1.23%; the Italian FTSE MIB index closed at 39,025.00 points on Monday, March 17, up 369.70 points, or 0.96%.Nvidia (NVDA.O) turned to decline and was recently down 1.8%.World Health Organization: By June this year, 80% of WHO-supported facilities in Afghanistan are at risk of closure.The acting chairman of the U.S. Securities and Exchange Commission (SEC) is considering adjustments to the monthly reporting rules for mutual funds and ETFs on portfolio holdings.March 17th, according to Crisil Coalition Greenwich, a financial analysis company, February was the busiest month in the history of the U.S. Treasury market, with uncertainty surrounding Trumps tariff policy and increased bets on the Feds rate cut boosting trading volume. Kevin McPartland, the companys director of market structure research, wrote in the report: "Whether they will increase tariffs, inflation surprises and the revival of expectations of rate cuts have kept investors and traders busy." In February, the average daily nominal trading volume of U.S. Treasury bonds was $1.068 trillion, up 16% year-on-year, surpassing August 2024 to become the most active month on record. February 28 surpassed October 31 to become the busiest day ever.

Sources suggest that PetroChina might sell assets in Australia and Canada to stem its losses

Aria Thomas

Jun 29, 2022 10:42


According to two persons with knowledge of the matter, PetroChina may sell natural gas projects in Australia and oil sands in Canada to minimize losses and shift financing to more lucrative regions in the Middle East, Africa, and central Asia.


PetroChina's plan follows a similar strategy shift by a smaller state rival, CNOOC (NYSE:CEO) Ltd, which was prepared to abandon its operations in the United Kingdom, Canada, and the United States because of concern that these assets may become susceptible to Western sanctions.


The transactions are the outcome of an internal examination of PetroChina's global portfolio that began last year, according to two unidentified individuals who refused to be identified due to the sensitivity of the subject.


As it does not own any oil and gas assets in the United States, unlike CNOOC, PetroChina's divestments are driven more by the assets' poor economics than by a fear of U.S. sanctions, but political tensions with Australia and Canada also played a part, they noted.


According to sources, the state-owned oil and gas firm intends to sell some of these assets, which have lost billions of dollars and are situated in uncompetitive locations, over the next two years.


"Australian gas assets Arrow Energy and Browse are among the top "negative assets" in PetroChina's global portfolio. According to one report, CNPC has a small competitive edge in this industry.


In 2010, PetroChina purchased Arrow Energy for $2.5 billion in a joint venture with Shell (LON:RDSa), marking its first investment in Australia's coal seam gas sector. It paid $1.63 billion in 2013 for BHP's investment in Browse, the largest undeveloped gas reservoir in Australia.


According to reports, the company is also contemplating selling its Canadian oil sands assets, MacKay River Oilsands and Dover (NYSE:DOV) Oilsands, owing to losses incurred from producing and processing bitumen. PetroChina declined to comment.


China's state-owned energy companies were among the most acquisitive in the industry during the beginning of the 2010s, as shown by CNOOC's $15 billion purchase of Canadian oil and gas company Nexen in 2013. However, they grew more subdued with the oil price fall in 2014-2015 and the government's financial audit.


In addition, economic worries may have caused PetroChina to reevaluate its acquisitions spree.


Arrow is PetroChina's most unprofitable offshore investment. If Browse receives final approval, it is unlikely to enter production until 2030 because to its technical complexity.


In 2020, Arrow made a final investment decision to construct the 5 trillion-cubic-foot Queensland Surat Gas Project. A dispute between PetroChina and Shell over the pricing of gas to a Shell-operated export facility reportedly caused the delay.


Arrow experienced losses of about A$3.3 billion ($2.29 billion) between 2018 and 2021, including A$2.2 billion in impairments.


When reached by Reuters, a representative for Arrow said, "The investment decisions of our shareholders are their responsibility, and Arrow would neither comment nor speculate on such topics."


Suggestion