Oil & Gas Industry
Chinese Oil Companies on Shopping Spree Abroad
China's public oil company has so far acquired 50% stake in Ineos Refining that included plants in Grangemouth (UK) and Lavera (France); a 67% interest in PetroKazakhstan, including its Shymkent refinery; and a 22.76% stake in Singapore Refining Company. PetroChina is also the majority partner in the Adrar refinery in Algeria.
Expansion Plans for South America
Now it seems as if the company has South America on its list: PetroChina is rumored to be “kicking the tires” of Valero’s refinery in Aruba in another potential purchase. This refinery was shut down back in April due to dismal margins.
Analysts believe that PetroChina can effectively hedge its results in these markets outside of China since, in most cases the company will be allowed to pass along crude oil price increases to customer through higher refiner product prices.
With crude oil reserves depleting and declining margins, the oil and gas industry eyes for alternatives. Natural gas, long–term poor cousin of the crude oil business, could bring a change, insiders bleive... More in Natural Gas Could Gradually Replace Crude Oil
Africa Next in Line for Chinese Oil Companies?
South Africa could be next in line: According to Global Data, Sinopec of China and South Africa’s PetroSA are in preliminary discussions about jointly building a 380,000 barrel/day refinery in Coega Bay, South Africa. Scheduled to be complete by 2019-2020, this refinery could process crudes from offshore production in the Atlantic Basin. The loaction would render it in a prime position to not only meet South Africa’s refined product needs, but also for shipments across the Atlantic and Indian Oceans. Its not the first foreign operation for Sinopec, which also has invested in refining capacity in the Middle East...