PetroChina plans to invest $60 billion (about 400 billion yuan) to increase overseas oil and gas production to 200 million tons a year.
According to the National Business Daily on May 22, Jiang Jiemin, chairman of PetroChina, said on May 20 that the company plans to invest $60 billion (400 billion yuan) to increase overseas oil and gas production to 200 million tons a year. Jiang Jiemin said PetroChina planned to inject most of its overseas operations into listed companies and that its deal to buy a 50 per cent stake in PetroChina Exploration from its group is still pending state approval.
Although the recent drop in international oil prices, but Jiang Jiemin expects that this will not have a big impact on the company's first-half results.
The overseas business will be injected into the listed company
Jiang Jiemin said PetroChina would acquire a 50 per cent stake in the group's PetroChina Exploration unit in due course.
PetroChina, which is 50 per cent owned by CNPC and CNPC, is dedicated to overseas business development. The deal is still subject to state approval and will eventually be cancelled if it is completed.
In the future, CNPC hopes that the Middle East, Central Asia, Africa, Asia Pacific and America will become the five major overseas cooperation zones of CNPC, with an annual output of 200 million tons of overseas oil and gas, or about 4 million barrels per day, for which CNPC will invest 60 billion US dollars. PetroChina's exploratory crude oil production capacity is now 75 million tons per year.
Jiang Jiemin said that the company is in the process of layout, mainly by the joint-stock company, will select a certain period and window, the PetroChina Exploration shares into the listed company.
A PetroChina oil field project in Iran with an annual capacity of 1m tonnes, equivalent to about 20,000 barrels a day of crude oil, is scheduled to start production in late 2010, Mr Jiang said. A refinery with an annual processing capacity of 5 million tons is also planned for completion in Syria in 2010.
We hope gas prices will be in line with the market as soon as possible
Jiang said natural gas has become PetroChina's main business and the target is for natural gas to account for 50% of oil and gas equivalent in the next 10 years. The government has made it clear that it will gradually rationalize the gas pricing mechanism. "PetroChina has an advantage in natural gas, with pipelines accounting for 70-75 per cent of the country and gas sales for 70-78 per cent."
Jiang Jiemin hopes that the price of natural gas can reflect the market demand and be in line with the market as soon as possible, so that the mechanism can be straightened out. However, the price of natural gas involves thousands of households and low-income groups, so the government will carefully study the price, and the company will adjust the price according to the decision and arrangement of the government.
At the same time, PetroChina's coal-bed methane (CBM) business is also moving forward, with an annual production capacity of 4 billion cubic meters within five years, Jiang said.
In shale gas development, CNPC is actively carrying out resource assessment and experimental area construction. Jiang Jiemin pointed out that Kunlun Energy and Kunlun Gas "two separate business, do not conflict." He explained that Kunlun Gas is the city gas and CNG as the main business, and the CNPC headquarters will coordinate. "There is the possibility of integration down the road. There is no timetable, no road map."
The sharp drop in oil prices had little impact on earnings
Jiang Jiemin said that the first half of the year has already gone through four months, the company's business performance in the first four months is good, and the international oil price corresponding to the company's performance in May and June is actually the oil price in April and May, the oil price at that time has not fallen sharply, so it has little impact on the company.
As for the current changes in international oil prices, he said that the big ups and downs of oil prices are not normal, and he hopes that the crude oil price will remain at $70 to $80 per barrel.
Jiang also commented on the pricing mechanism of refined oil products. He said the current system needed to be "improved" and that "22 working days are too transparent."
"At present, the international crude oil price has fallen below $70 per barrel, and the government is under pressure under the current domestic price mechanism. Because people want to follow the mechanism to lower the price of refined oil products." "PetroChina will follow the government's mechanism and does not want the price of refined oil to fluctuate too much," Jiang said.
Jiang Jiemin said the government will take into account the low - and middle-income families in cities when deciding whether to adjust fuel prices, and he hopes the prices can reflect the market and demand.
BP said the rate at which it was collecting the leaking oil had slowed to 1,120 barrels a day for the third straight day and confirmed that it was planning to begin a "top kill" operation.
The amount of oil that BP is collecting from the Gulf of Mexico spill has dropped to 1,120 barrels a day, a BP spokesman said Thursday.
It was the third day in a row that the amount of crude collected by BP declined. JohnCurry, a spokesman for the company, said the decrease was due to some "operational tweaks."
The company said it collected 1,360 barrels of oil equivalent on the 23rd, down from 2,200 barrels per day on the 21st and 22nd. That is well below the 5,000 barrels the company said it collected on 20 days.
Data on the 20th showed that oil was leaking far more than official estimates, forcing BP to admit that the leak was larger than previously thought.
BP has come under fire for failing to stop the leak and for failing to provide accurate estimates of how much oil is leaking. Pressure on the company increased during the week of the 20th as heavy oil from the spill began to hit the Louisiana coast.
Currie also said the company Thursday extracted 3 million cubic feet of natural gas from the ruptured pipeline. That's down from 7 million cubic feet on Wednesday.
Currie confirmed that BP was planning to embark on a so-called "top kill" operation, in which heavy drilling fluid is injected into the well and then sealed with cement to stop the flow of oil and gas and eventually seal the well.
Urumqi, May 24, Xinhua Mao Yong, Zhang Wei) According to the Exploration and Development Research Institute of Xinjiang Oilfield Company, researchers have discovered 360 million tons of heavy oil reserves in the "Zhong 18 well area" near the "Devil City" in Karamay, and the industrial thermal recovery of heavy oil in this area is about to start.
CNPC News (reporter Li Dan and Wang Qiaoran) On September 23, the acceptance and evaluation meeting of the major science and technology special project of "the development of complete sets of technology for industrialization of large ethylene plant" was held in Beijing. The reporter was informed that CNPC has successfully developed a large set of ethylene technology with independent intellectual property rights, which has been successfully applied in the 1.2 million ton ethylene renovation and expansion project of Daqing Petrochemical Company, ending the long history of relying on the introduction of ethylene technology in China.
At the end of last month, the 2014 China Petroleum and Chemical Private Enterprises Development Conference was held in Beijing. The conference, attended by nearly 400 companies, can be said to be a feast for private oil and chemical companies. It has been three years since the last development conference was held in 2011. So in the past 3 years, what kind of achievements have China's private petroleum and chemical enterprises made? What are the opportunities and challenges for future development?