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PetroChina intends to invest 400 billion yuan in overseas production expansion
[Shihua Finance News, May 24] PetroChina plans to invest 60 billion US dollars (about 400 billion RMB) to increase the annual output of overseas oil and gas to 200 million tons.
According to the Daily Economic News on May 22, Jiang Jiemin, chairman of CNPC, disclosed on May 20 that the company plans to invest 60 billion US dollars (about 400 billion RMB) to increase the annual output of overseas oil and gas to 200 million tons. Jiang Jiemin said that PetroChina plans to inject most of its overseas business into listed companies, and that the company's acquisition of 50% of the shares of PetroChina Exploration from the group company is still awaiting the approval of the state.
Despite the recent sharp drop in international oil prices, Jiang Jiemin expects that this will not have a significant impact on the company's first half performance.
Overseas business will be injected into listed companies
Jiang Jiemin said that PetroChina would acquire 50% of its exploration stake in PetroChina in due course.
China Petroleum Exploration is currently 50% owned by PetroChina Group and PetroChina, which are specially responsible for overseas business development. At present, the transaction is still to be restarted after the approval of the state. If the transaction is completed, China Petroleum Exploration will eventually be cancelled.
In the future, PetroChina hopes that the Middle East, Central Asia, Africa, Asia-Pacific and the Americas will become the five major overseas cooperation zones of PetroChina, with an annual output of 200 million tons of overseas oil and gas rights and interests, with a total output of about 4 million barrels per day, for which 60 billion US dollars will be invested. PetroChina's crude oil exploration capacity has now reached 75 million tons per year.
Jiang Jiemin said that the company is being laid out, mainly by joint-stock companies, and will choose a certain period and window to load all the shares of CNPC exploration into listed companies.
Jiang Jiemin disclosed that an oil field project in Iran by PetroChina is scheduled to be put into operation in late 2010, with an annual capacity of 1 million tons, equivalent to about 20,000 barrels of crude oil per day. A refinery with an annual processing capacity of 5 million tons is also planned to be built in Syria in 2010.
We hope that gas prices will be in line with the market as soon as possible.
Jiang Jiemin said that natural gas has become the main business of PetroChina, with the goal that natural gas will account for 50% of the oil and gas equivalent in the next 10 years. The government's attitude is very clear, and it will gradually straighten out the price mechanism of natural gas. "PetroChina has an advantage in natural gas, with natural gas pipelines accounting for 70-75% of the country, and natural gas sales accounting for 70-78%.
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. The mechanism can be straightened out. However, the price of natural gas involves millions of households and low-income groups. The government will carefully judge and the company will adjust the price according to the decision and arrangement of the government.
At the same time, PetroChina's CBM business is also actively advancing. Jiang Jiemin said that it plans to reach an annual production capacity of 4 billion cubic meters in five years.
In the development of shale gas, PetroChina is actively carrying out resource assessment and Experimental Zone construction. Jiang Jiemin pointed out in particular that Kunlun Energy and Kunlun Gas "have their own business and do not conflict". He explained that Kunlun Gas is mainly based on urban gas and CNG, and CNPC headquarters will coordinate. "There is a possibility of integration in the future. There is no timetable and no road map."
The drop in oil prices has little impact on performance.
Jiang Jiemin said that four months had passed in the first half of the year and the company had been doing well in the first four months. The international oil prices corresponding to the company's performance in May and June were actually those in April and May. At that time, the oil prices had not fallen sharply, so there was little impact on the company.
Regarding the current changes in international oil prices, he said that the sharp rise and fall in oil prices were abnormal and hoped that crude oil prices would remain between $70 and $80 per barrel.
Jiang Jiemin also expressed his views on the pricing mechanism of finished oil. In his view, the current mechanism needs to be "improved" and "22 working days are too transparent".
"At present, the international crude oil price has fallen below $70 a barrel, according to the current domestic price mechanism, the government is facing pressure. Because people want to lower the price of refined oil according to the mechanism. Jiang Jiemin said, "PetroChina will follow the government's mechanism and do not want the price of refined oil to fluctuate too much."
Jiang Jiemin said that the government would consider the factors of low-income families in the city to decide whether to adjust the price of refined oil. He hoped that the price of refined oil could reflect the relationship between market and demand.