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Higher oil and gas production and drop in lifting costs helped PetroChina's (PTR) exploration and production unit profit surge 32.9% during the nine months ended Sep 30, 2019.
A United Arab Emirates plan to launch its own global oil benchmark was thrown into confusion on Tuesday after comments made by its own national oil company. ADNOC first said it sees Murban as a contract to replace the global Brent benchmark, only to retract the comment.
Intercontinental Exchange Inc said on Monday that oil majors including BP, Total and Shell would be partners in a new exchange it is launching in the United Arab Emirates next year to list Abu Dhabi National Oil Co's (ADNOC) flagship Murban crude grade. The Murban futures contract, to be hosted on the new ICE Futures Abu Dhabi (IFAD), would replace retroactive pricing, allowing buyers to hedge risks and capture more value from ADNOC's oil output, CEO Sultan al-Jaber told an energy forum in the United Arab Emirates capital Abu Dhabi.
(Bloomberg) -- PetroChina Co.’s Rudong terminal received its first cargo of liquefied natural gas in more than a month this week after its shut-down helped break the country’s 30-month streak of rising imports.A tanker, Gaslog Singapore, docked at the terminal in Jiangsu province Wednesday and departed the following day with a lower draft, ship-tracking data compiled by Bloomberg show, indicating it discharged LNG. It was the first ship to visit the port since late September, when a pipeline was damaged during a storm.The loss of the terminal, which is among China’s biggest, contributed to total gas imports dropping to 6.52 million tons in October, the first year-on-year decline since March 2017. Inbound shipments, including LNG and piped gas, were down 780,000 tons from October 2018, according to customs data released Friday. That difference may be mostly attributed to Rudong, which took in about 727,000 tons of LNG last October, compared with nothing last month, according to ship-tracking data.The outage is also adding to a general import slowdown by China as a trade war with the U.S. takes its toll on industrial activity. Through the end of October, gas imports are up about 7.9% this year, compared with a 33% jump over the same period a year ago.Already Slowing“China’s gas imports growth has been already slowing down since summer,” said Maggie Kuang, an analyst with BloombergNEF. “The outage at Rudong has just made the slow-down even more noticeable.”It’s unclear how quickly the Rudong terminal will ramp up to full capacity. Repair works are still being completed to allow for pipeline shipments to customers later this month, according to a trader with knowledge of the matter, who asked not to be identified because the information isn’t public. PetroChina didn’t immediately respond to a request for comment.China’s winter demand season officially begins Nov. 15, when Beijing turns on central heating system. That should drive up gas consumption and make room for more imports. “Gas demand in China is set to increase,” Kuang said.Milder weather during winter could limit that seasonal demand. There is a “very low chance” of colder-than-normal temperatures in China this winter, the nation’s meteorological administration said on its website Thursday.To contact the reporters on this story: Stephen Stapczynski in Singapore at email@example.com;Dan Murtaugh in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Jasmine NgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Everything is awesome in financial markets. The sense that a trade deal may finally be on the cards sent stocks and crude soaring in the U.S. Thursday, while flight-to-safety trades such as bonds and gold slumped. Both sides seem to be moving toward a phase one agreement that would involve jointly reducing tariffs in return for vaguer concessions on the underlying issues.“If there’s a phase one trade deal, there are going to be tariff agreements and concessions,” White House economic adviser Larry Kudlow told Bloomberg.“If China, U.S. reach a phase-one deal, both sides should roll back existing additional tariffs,” China’s Ministry of Commerce spokesman Gao Feng said earlier.There’s a laconic warning buried inside both of those statements: “If.”It’s certainly possible that President Donald Trump is tiring of the trade war and as desperate to get an agreement on the table as Beijing seems to think. But the current febrile atmosphere appears to have left the fundamentals of this dispute behind. A single tweet from @realdonaldtrump could be enough to puncture the party mood.Consider some of the things you might expect to be seeing if a significant agreement was really in the works. China is well aware of the importance of the bilateral trade deficit in Washington, and one of the most promising areas for any agreement is to sharply increase imports of American agricultural and mineral products.Yet China's biggest oil producer, state-owned PetroChina Co., is behaving as if the opposite plan is underway. In results last week, the company reported its trailing 12-month capital spending rose to the highest level since 2014, thanks to a government push to lessen China’s dependence on imported fuel.PetroChina’s returns on invested capital are already the worst of the oil majors, and pressure to extract more oil and gas from China’s unpromising geology will make that situation worse. A country that was serious about balancing out the trade relationship with the U.S. and making the most productive use of state companies’ cash would be looking for ways to tap America’s energy boom instead.It’s a similar case with agriculture. China could increase its imports of poultry, beef, pork and other products by as much as $53 billion just by removing current constraints on trade, according to a study last year by Minghao Li, Wendong Zhang and Dermot Hayes of Iowa State University.If anything, that’s probably low-balling it: You could add $10 billion to the total just by taking soybean imports back to where they were before the current round of trade tensions cut that trade close to zero. One only needs to look at China’s trade data released Friday to see that the opposite is happening. The surplus with the U.S. may be narrowing, but on a global, trailing 12-month basis it was the widest it’s been since May 2017. Part of that is simply the weakness of domestic demand. But hosting jazzy import conferences won’t change the fact that President Xi Jinping’s praise of zili gengsheng, or self-reliance, is just as pointed a retreat from trade as Trump’s “Make America Great Again” mantra.All this comes before even touching on issues around intellectual property, technology transfer and state involvement in the economy, which were ostensibly the reasons for this trade war in the first place. China continues to make quiet progress on the first front as if the trade war wasn’t happening; and formal technology transfer is shrinking, too, although stories of outright industrial espionage abound. On the third point, the Chinese state is, if anything, becoming an even more dominant economic actor than it was hitherto.What about this backdrop makes a deal seem so imminent? Beijing appears unlikely to make the sorts of concessions on the main issues under contention that would allow Trump to present an agreement as a personal victory. Trump, for his part, is presiding over a stock market that — thanks in part to all the optimism about a trade deal — hits fresh records every day, giving him no incentive to sign on to a deal that looks like a climb-down.Right now, markets are behaving as if the whole structure of trade impediments built up over the past two years could start getting dismantled within weeks. It’s quite as likely that, in the white heat of a breakdown, the levies suspended last month are reinstated, only to be followed by the final round still due to kick in Dec. 15. Should that come about, the current exuberance could turn into a hangover awfully quick.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- PetroChina Co., the country’s biggest oil and gas producer, said third-quarter profit fell amid lower crude prices and weaker refining and chemical operations.Net income dropped to 8.83 billion yuan ($1.3 billion) in the three months ended September, from 21.04 billion a year ago, the company said in a filing to the Shanghai stock exchange Wednesday.Key InsightsPetroChina’s income from exploration & production was exposed to the 18% drop on-year in average Brent prices during the quarter.E&P operating profit in the third quarter slumped 17% from a year ago, according to Bloomberg calculations.The state-owned producer also faced pressure from its downstream businesses and cited competition in the domestic fuel market. Operating profit from its refining and chemicals segment shrank 82% in the third quarter,PetroChina continued to lose money from selling imported natural gas domestically at regulated prices. Those losses widened to 10.6 billion yuan during the quarter from 6.54 billion yuan a year ago.The company’s upstream business is likely to benefit in the fourth quarter from crude price’s stabilization and peak demand for natural gas, said Tian Miao, an analyst at Everbright Sun Hung Kai Co.Get MoreCrude oil output rose 2.9% to 682.7 million barrels in the first nine months of the year.Domestic production climbed 1.4% to 556.9 million barrels.Natural gas production increased 8.7% to 2.89 trillion cubic feet in the same period.Domestic output gained 9.7% to 2.69 trillion cubic feet.Average realized crude oil price fell 9.5% to $61.49 a barrel in the nine-month period.Natural gas dropped 4% to $5.49 per thousand cubic feet(Updates with analyst comment under Key Insights)To contact Bloomberg News staff for this story: Jasmine Ng in Singapore at firstname.lastname@example.org;Feifei Shen in Beijing at email@example.comTo contact the editor responsible for this story: Ramsey Al-Rikabi at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China's natural gas demand is expected to rise by more than 300 billion cubic metres (bcm) between 2018 and 2035, or 30% of global volume growth, stoked by the country's push to shift to the cleaner fuel from coal, a senior executive of PetroChina said on Wednesday. "It's slightly cheaper than central Asian gas but PetroChina will still be making a loss as it (the price) exceeds that of domestic city-gate benchmark rates," Ling told Reuters, speaking separately on the sidelines of the Singapore International Energy Week.
China’s imports of Venezuelan oil have fallen to a nine-year low as major Chinese oil companies scramble to avoid fallout from tightening U.S. sanctions
PetroChina (PTR) aims to extract 7.7 billion cubic meters of shale gas in 2019 while expanding the total output to nearly 10 billion cubic meters by this year-end.
Saudi Aramco informed PetroChina on Tuesday that some of its loadings of light crude oil for October will be delayed by up to about 10 days after Saturday's attacks on the kingdom's oil facilities, according to a senior Chinese state oil source with knowledge of the matter. The weekend attack on oil processing facilities at Abqaiq and Khurais knocked out half of the oil output from the world's top exporter, sending consumers in Asia scrambling for alternatives. The Chinese state refiner was also told that some of its September-loading light crude cargoes will be swapped to heavier grades with no delays or change in volumes, the source said.
China’s call to its oil majors to increase energy production from domestic sources has resonated with the big 3, but production successes aren’t mind-blowing just yet
TOTAL (TOT) gets approval to go ahead with the $13-billion Papua New Guinea LNG project, which will help it to benefit from rising demand of LNG in emerging economies.
Danish pension fund MP Pension said on Tuesday it would sell its stakes in 10 of the world's biggest oil firms as it seeks to divest major sources of carbon emissions from its portfolio. MP Pension said it would sell its stakes in ExxonMobil , BP, Chevron, PetroChina, Rosneft, Royal Dutch Shell, Sinopec, Total, Petrobras and Equinor.