Profile: PetroChina Co Ltd (PTR.N)
2 Dec 2013
PetroChina Company Limited (PetroChina), incorporated on November 5, 1999, is an oil and gas producer and seller in the People’s Republic of China. The Company operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. The Company is engaged in a range of petroleum and natural gas related activities, including the exploration, development, production and sale of crude oil and natural gas; the refining of crude oil and petroleum products, as well as the production and marketing of basic petrochemical products, derivative chemical products and other chemical products; the marketing and trading of refined oil products, and the transmission of natural gas, crude oil and refined oil products as well as the sale of natural gas. As of December 31, 2010, the Company’s its crude oil and natural gas reserves and production-related assets are located in China. During the year ended December 31, 2010, Arrow Energy Holdings Pty Ltd (the Joint Venture Company), formerly CS CSG (Australia) Pty Ltd. was formed as a joint venture company by PetroChina International Investment Company Limited (a wholly owned subsidiary of the Company) and Shell Energy Holdings Australia Ltd. PetroChina International Investment Company Limited held 50% interest in the Joint Venture Company. On August 23, 2010, the Joint Venture Company acquired 100% equity interest in Arrow Energy Limited.
Exploration and Production
The Company is engage in crude oil and natural gas exploration, development and production. Substantially all of its total estimated proved crude oil and natural gas reserves are located in China, principally in northeastern, northern, southwestern and northwestern China. During 2010, the crude oil and natural gas produced by the Company at overseas regions accounted for 10.3% and 3.8% of its total production of crude oil and natural gas, respectively.
The Company holds exploration and exploitation licenses for oil and gas (including coal seam gas) covering a total area of approximately 458.4 million acres, consisting of the exploration licenses covering a total area of approximately 436.4 million acres and the exploitation licenses covering a total area of approximately 22.0 million acres. To further develop its crude oil and natural gas businesses, the Company has obtained oil and gas exploration licenses covering an area of 41.82 million acres in South China. As of December 31, 2010, proved developed reserves for crude oil and natural gas accounted for 67.4% and 47.5% of its total proved crude oil and natural gas reserves, respectively. The Company is conducting exploration and development in 12 provinces, two municipalities under the direct administration of the central government and three autonomous regions in China as well as in certain regions of other countries.
The Company’s oil and gas properties include Daqing, Changqing , Xinjiang and Other regions. The Daqing oil region, its oil and gas producing property, is located in the Songliao basin and covers an area of approximately one million acres. In 2010, its crude oil production was 805.6 thousand barrels per day. As of December 31, 2010, its proved crude oil reserves in the Daqing oil region were 3,178.1 million barrels. The Xinjiang oil region is a crude oil producing properties and is located in the Junggar basin in northwestern China. As of December 31, 2010, its proved crude oil reserves in the Xinjiang oil region were 1,418.6 million barrels. The Sichuan gas region covers a total area of approximately 2.3 million acres. As of December 31, 2010, the Company had 105 natural gas fields under development in the Sichuan gas region. As of December 31, 2010, its proved natural gas reserves in the Sichuan gas region were 10,512.5 billion cubic feet. The Changqing oil and gas region covers parts of Shaanxi Province and Gansu Province and the Ningxia and Inner Mongolia Autonomous Regions. As of December 31, 2010, its proved crude oil reserves in the Changqing oil region were 1,946.8 million barrels. The Tarim oil and gas region is located in the Tarim basin in northwestern China with a total area of approximately 590,000 acres. In 2010, it produced 611.1 billion cubic feet of natural gas for sale in the Tarim oil and gas region.
Refining and Chemicals
The Company operates 30 enterprises located in nine provinces, four autonomous regions and three municipalities to engage in refining of crude oil and petroleum products, as well as the production and marketing of basic petrochemical. The Company produces a range of refined products at its refineries. Its refined products include diesel, gasoline, kerosene, lubricants, fuel oil and naphtha. Its chemical products include Propylene, Ethylene, Benzene, Synthetic resin, Other synthetic fiber raw materials and polymer , Synthetic rubber and urea.
The Company is engaged in the marketing of refined products through 32 regional sales branch companies, three distribution branch companies, one lubricants branch company and one fuel oil company. These operations include the transportation and storage of the refined products, and the wholesale, retail and export of gasoline, diesel, kerosene, lubricant, paraffin, asphalt and other refined products. In addition, the Company has been actively developing international trade to enhance its influence in international oil market. The Company sells refined products both directly and through independent distributors into various wholesale markets, as well as to utility, commercial, petrochemical, aviation, agricultural, fishery and transportation companies in China. Its gasoline and diesel sales also include the amount the Company transferred to its retail operations.
Natural Gas and Pipeline
The Company sells natural gas primarily to fertilizer and chemical companies, commercial users and municipal utilities owned by local governments. In addition, the Company also conducts the operation of crude oil and refined product transmission in the natural gas and pipeline segment. As of December 31, 2010, the Company owned and operated approximately 32,801 kilometers of natural gas pipelines in China. As of December 31, 2010, its crude oil transportation and storage infrastructure consisted of 14,782 kilometers of crude oil pipelines; and crude oil storage facilities with an aggregate storage capacity of approximately 28.3 million cubic meters. On September 27, 2010, Russia to China Crude Oil Pipeline was completed and was put into commercial operation on January 1, 2011. In addition, the Company operates other crude oil pipelines, including the crude oil pipeline for west regions.
As of December 31, 2010, its refined product transportation and storage infrastructure includes 9,257 kilometers of refined product pipelines; and refined product storage facilities with a total storage capacity of approximately 29.1 million cubic meters. In addition, the Company also operates other refined product pipelines, such as Lanzhou to Chengdu to Chongqing refined product.
The Company competes with China Petroleum and Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC) and China National Star Petroleum Corporation (CNSPC).
PetroChina Co Ltd
Dongzhimen North Street
East District, Dongcheng Distri
BEIJING BEJ 100007
Company Web Links
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