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    Home > Organic Chemistry Topics > Organic Chemistry Project > Listed oil companies deepen oil and gas cooperation with the help of "One Belt One Road"

    Listed oil companies deepen oil and gas cooperation with the help of "One Belt One Road"

    • Last Update: 2022-02-20
    • Source: Internet
    • Author: User
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    In the context of the implementation of the “Belt and Road” initiative, listed oil companies use the “Belt and Road” to deepen oil and gas cooperation, accelerate business transformation under the background of the “cold winter” in the industry, actively explore business in the international market, and find new business fulcrums
    At the same time, some oil and gas companies in the countries along the route sell oil and gas fields and assets at low prices, which also brings opportunities for low-cost mergers and acquisitions for China's oil and gas companies

    ? The proportion of overseas revenue increased? Due to the long-term consolidation of international oil prices at a low level in 2016, the global oil and gas industry continued to suffer large losses, which also forced domestic oil and gas companies to accelerate reforms

    Many companies have seized the opportunity of the “Belt and Road” initiative to accelerate their international deployment

    The latest "2017 China Oil and Gas Industry Development and Outlook Report Blue Book" released by the PetroChina (7.
    550, -0.
    03, -0.
    40%) Association shows that the "Belt and Road" area has become the most important oil and gas cooperation zone for Chinese oil companies.
    Its oil and gas investment and The output accounts for more than 50% of the total overseas investment and output of Chinese oil companies

    ? Taking CNOOC Engineering as an example, due to the impact of low oil prices, the company achieved revenue of 11.
    992 billion yuan in 2016, a year-on-year decrease of 25.
    However, the company’s overseas revenue increased by 23% year-on-year, mainly due to the larger contract value.
    With the gradual implementation of the Yamal project, the Zawtika project in Myanmar, and the FPSO project in Brazil, overseas contract revenue has further increased

    ? The company stated that under the "One Belt One Road" initiative, the company has accelerated the pace of internationalization and strived to develop markets along the route to achieve win-win cooperation

    It is understood that CNOOC Engineering has established branches in Indonesia, Australia, Singapore, Saudi Arabia, and Abu Dhabi, and projects are being implemented in Indonesia, Myanmar, Brunei, Australia, the Middle East, Russia, and Northern Europe

    ? Take Jereh shares as an example

    In 2016, the company's international business revenue increased by 54.
    25% year-on-year, and its proportion increased by 15.
    79%, mainly due to the company's accelerated internationalization, deepening of the international market, and an increase in the proportion of foreign business revenue

    The company stated that oilfield projects involve upstream oil and gas exploration and development and midstream oil and gas gathering and transportation.
    Most oil-producing countries have severely underinvested in oil and gas infrastructure.
    Together with the “Belt and Road” initiative, this will lay a market foundation for engineering companies to expand into the international market

    ? Therefore, in 2016, Jereh Co.
    , Ltd.
    carried out an adjustment transformation of its business

    From the past drilling equipment and oilfield technical services to a provider of integrated oil and gas technology solutions, engineering equipment and services to a provider of integrated oil and gas engineering solutions

    Industry insiders pointed out that the upgrade of this profit model will greatly increase the integrated service income of integrated technology and engineering, and will also drive the increase of traditional manufacturing and service income.
    It is a reference path for the oilfield service industry to seek development

    ? "State" and "people" advance together to accelerate oil and gas cooperation? At the level of central enterprises, taking PetroChina as an example, the company currently implements nearly 50 oil and gas cooperation projects in 19 countries along the "Belt and Road", and the "Belt and Road" has become its overseas The main source of oil and gas production and economic benefits

    In the field of oil and gas exploration and development, Sinopec has successively engaged in oil and gas exploration and development investment cooperation with 11 countries along the “Belt and Road”, with a cumulative investment of 20.
    311 billion US dollars and a cumulative total of 98.
    316 million tons of equity oil production

    In the field of engineering services, Sinopec provides petroleum engineering services to more than 20 countries along the “Belt and Road”.
    The business covers drilling, logging, geophysical prospecting, surface engineering, etc.
    , and has driven the export of equipment and materials

    ? It is worth noting that the “Belt and Road” initiative proposed that China’s participation in international oil and gas cooperation was dominated by state-owned enterprises represented by the “three barrels of oil”.
    In the past two years, state-owned enterprises have remained the main force in oil and gas cooperation in the “Belt and Road” initiative.
    However, the pace of "going out" of private capital has also accelerated significantly

    ? The announcement shows that CEFC Energy has obtained equity in 3 oilfield blocks of the Baikal project in Eastern Siberia, Russia, and through fixed share expansion and the establishment of energy investment and development funds, it will further acquire European Black Sea and Mediterranean gas stations, and expand downstream logistics systems and upstream Resources equity, improve the company's overseas oil and gas terminal layout, promote the company's European terminal sales network and the integrated industrial system of refining, chemical, and storage, and form linkage and complementarity with the domestic market

    ? Intercontinental Oil & Gas spent 8.
    2 billion yuan to consolidate overseas oil and gas assets

    According to the announcement, the company intends to price of 6.
    83 yuan / share non-public offering of 1.
    2 billion shares for the purchase of Shanghai Zhou Xin Branch Otaki Energy Investment Co.
    , Ltd.
    99% stake

    It also raised supporting funds of no more than 7 billion yuan from no more than 10 objects including Shenzhen Zhongshi Silk Road Investment Management Partnership (Limited Partnership), an enterprise controlled by the company’s actual controller Xu Ling, mainly for the construction of the acquisition target

    ? Analysts pointed out that private enterprises have taken advantage of their flexible mechanisms to obtain more cooperation opportunities in overseas oil and gas cooperation.
    Oil and gas cooperation has gradually shifted from being dominated by state-owned enterprises to a pattern of joint participation of state-owned enterprises and private enterprises

    ? "One Belt, One Road" helps optimize the investment environment? The continued decline in international oil prices provides a good opportunity for China's oil and gas resource mergers and acquisitions

    At present, many companies have begun to deploy oil and gas projects in Central Asia and other areas along the “Belt and Road”, including not only state-owned enterprises such as CITIC Resources, PetroChina and Zhenhua Petroleum, but also Guanghui Energy (4.
    210, -0.
    04, -0.
    94) %), Zhunyou Stock and Intercontinental Petroleum and other private enterprises

    ? On February 23, 2017, Zhenhua Petroleum signed a contract with Chevron Petroleum Corporation of the United States to acquire Chevrolet's US$2 billion natural gas field in Bangladesh

    It is understood that the equity production scale of the gas field in 2015 was 6.
    2 million tons

    However, Cinda Securities analysts told the China Securities Journal that, unlike the past "three barrels of oil" large-scale overseas mergers and acquisitions, this round and future oil and gas companies "going out" will be more market-conscious in terms of value

    Take the payment method as an example.
    In the past, overseas oil and gas mergers and acquisitions were mostly based on cash payments, and tended to purchase as a whole, but this is a lot of pressure for oil companies.
    In the future, we should try to reduce the pressure on cash, such as stock payment, and purchase partial equity of listed companies.
    Many ways

    ? China Petroleum Technology Development Corporation Song Wenying suggested that oil and gas cooperation is a vital part of the "Belt and Road" initiative, and the government should actively introduce relevant support policies to promote international cooperation in the domestic oil and gas industry

    It is recommended that state-owned enterprises and private enterprises should be coordinated to form a synergistic force.
    At the same time, the cooperation and exchanges of international energy organizations should be strengthened to further improve the regional energy cooperation system

    Some people in the industry pointed out that in the process of "going global", oil and gas companies still have problems such as generally low asset efficiency, insufficient actual control capabilities, and difficulty in obtaining high-quality resources

    However, with the comprehensive advancement of the “One Belt One Road” initiative, the investment environment along the route will be gradually optimized.
    In conjunction with the continuous advancement of various reforms in the energy sector, the implementation of relevant policies such as price marketization, deregulation of import rights, and separation of pipeline networks will be implemented in the “Belt and Road” initiative.
    Under the "One Road" initiative, China's oil and gas companies will get more assistance in implementing overseas M&A

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