China’s initiative of acquisition of overseas properties seems likely to continue with the recent announcement of PetroChina Co. Ltd. (PTR) to invest $60 billion to increase its overseas oil and gas production to 4 million barrels per day. This is in line with the overseas investment decisions taken by its peers like CNOOC Ltd. (CEO) and Sinopec (SNP).
 
Though PetroChina did not mention any time schedule for making this investment, it hinted that it will purchase most of its parent’s (China National Petroleum) overseas assets in the years to come. In addition, the company will build a refinery in Syria and plans to bring online an oilfield in Iran this year.
 
China’s impressive economic growth has significantly increased its demand for oil, natural gas and chemicals. This growth momentum presents attractive opportunities for industry players that can meet the country’s fast-growing energy needs. Being one of the two integrated oil companies in China, PetroChina is well positioned to capitalize on these favorable trends.
 
Growth prospects are particularly attractive in the downstream and natural gas sectors. PetroChina plans to accelerate efforts to develop shale gas and tight gas output and management hopes to have an annual coal bed methane capacity in China of 4 billion cubic meters within five years.
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