• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 10 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour China still to keep Iran oil flowing amid U.S. sanctions
  • 2 hours Is NAFTA dead? Or near breakthrough?
  • 7 hours China goes against US natural gas
  • 2 days Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 hour Japan carmakers admits using falsified emissions data
  • 2 days Renewable Energy Could "Effectively Be Free" by 2030
  • 20 mins How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 2 days Saudi Fund Wants to Take Tesla Private?
  • 15 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 1 day Why hydrogen economics does not work
Alt Text

Shale Profits Remain Elusive

Despite higher oil prices, U.S…

Alt Text

Why Is Big Oil So Excited About Alaskan Crude?

Alaskan officials have just published…

Alt Text

Why Saudi Arabia Cut July Oil Production

Saudi Arabia’s oil production in…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

PetroChina Mulls $85 Billion Spinoff

PetroChina

PetroChina may be considering a spinoff for its oil and gas pipeline business, which could be worth as much as $85 billion, according to investment analysts. The suggestion has been sparked by expectations that China’s largest oil producer will report its worst financial figures in history, and by energy industry reforms being drafted by the central government.

The network spans across China, from the west to the east, supplying crude oil and natural gas to all major cities in the country. Its total length is 48,200 miles, of which more than 65 percent is natural gas pipelines. As a whole, PetroChina is the biggest oil and gas pipeline operator in China, with a 71-percent market share.

Back in 2015, Bloomberg recalls, the Chinese government had plans to take the pipeline business away from PetroChina and peer Sinopec, and unite them into a separate company. These plans have been dropped, however, leaving the future of the operations hanging in the air.

A spinoff or a listing would be the way to go, analysts believe, as shareholders seek an improvement of dividends in the absence of any real chance for expanding domestic production and boosting profits. PetroChina, like all other large Chinese oil and gas companies, has been suffering from reserve depletion in recent years.

Earlier this year, the company, which is the listed business of state-owned giant CNPC, warned that its profit for 2016 could be 70-80 percent lower than the 2015 result because of the low oil prices. The net result, PetroChina said, could turn out to be the lowest since 1996.

However, earlier this month, Goldman Sachs said in a note that it will maintain its “Buy” stance on PetroChina, expecting solid improvements in performance this year. The improvement will come on the back of higher prices as well as the company’s cost-cutting efforts and strong fundamentals, including free cash flow and cash return.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News