Page 11 - AsianOil Week 12 2021

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PetroChina profits tumble 58% in 2020

PERFORMANCE STATE-RUN PetroChina has posted a 58% will also invest in gas-fired power plants, wind,
year-on-year decline in its 2020 net profit to solar, geothermal and hydrogen projects.”
CNY19bn ($2.9bn) on the back of tumbling While the company’s gas production in
international oil and gas prices. 2020 grew by 8% y/y to 4.22 trillion cubic feet
The company’s operating profit from oil and (43.62bn cubic metres), PetroChina only intends
gas production slumped 76% y/y to CNY23.1bn to increase its output by 3.2% this year to 4.35
($3.53bn). PetroChina’s 4.1% increase y/y in trillion cubic feet (44.97 bcm).
oil and gas production to 1.625bn barrels of Downstream operations posted a CNY1.8bn
oil equivalent (boe) was not enough to offset a ($275mn) loss in 2020, against a CNY16bn
34.5% fall in the average selling price of oil and ($2.44bn) profit a year earlier.
a 10.9% contraction in gas prices. The company The state major recorded a one-off pre-tax
said it was aiming to produce 1.65bn barrels this gain of CNY46.9bn ($7.17bn) relating to the sale
year. of its pipeline assets to state-owned PipeChina.
PetroChina warned that it expected crude oil PetroChina has set its capital expenditure at
demand to peak and fall within the next 10 years, CNY239bn ($36.52bn) for the year, down from
and that it would look to expand the share of gas CNY297bn ($45.38bn) in 2020.™
in the production mix.
“Crude oil demand is already at a plateau-
ing stage and will gradually fall. But we see the
demand for cleaner-burning natural gas contin-
uing to rise,” company president Duan Liangwei
said on March 25.
PetroChina chairman Dai Houliang said the
company would cope with declining oil demand
by raising gas production.
He said: “We aim to raise natural gas’s contri-
bution to our total output to 55% by 2025, and we

OCEANIA

APPEA calls for budget reforms

POLICY AUSTRALIA’S leading upstream industry body The executive argued that this year’s federal
has called on the government to adopt several budget represented an opportunity to “pull the
budgetary reforms to encourage oil and gas right levers and get fiscal settings right”.
investment. APPEA’s suggested budget reforms include:
The head of Australian Petroleum Produc- clarifying that salary and wage costs are imme-
tion and Exploration Association (APPEA), diately deductible; improving investment allow-
Andrew McConville, said on March 25 that the ances, removing barriers to business project
upstream could be a “key plank” in the coun- restructuring by providing tax asset rollover
try’s economic recovery from the coronavirus relief; amending the Petroleum Resource Rent
(COVID-19) pandemic, but that the spread of Tax (PRRT) Assessment Act to link a petroleum
“misinformation” had to be tackled. project to a production licence where a pro-
McConville, speaking at Australian Domes- duction licence may revert to a retention lease,
tic Gas Outlook conference, said there was an and closing out the PRRT Gas Transfer Pricing
enormous opportunity to create thousands of Review without change.
jobs and help Australia achieve net-zero emis- McConville said: “A recharged oil and gas
sions by 2050. industry will stimulate growth in other indus-
“Sadly, vested interests have spread misin- tries and every additional person employed in
formation on gas and it is time to set the record oil and gas can support up to 10 other jobs and
straight, because the fact is, demand in Southeast innumerable small businesses.”
Asia for gas is forecast to double by 2040 and we To support his point, the executive pointed
need to able to capitalise on that,” McConville to an APPEA-commissioned report from EY
said. indicating that, under the right investment
He added: “If we get this right, then the prize settings, the oil and gas sector could provide a
for Australia is immense. We need to be bold AUD350bn ($265.09bn) boost to the economy
again in Australia and get the policy settings and generate more than 220,000 jobs over the
right for investment.” next two decades.™

Week 12 25•March•2021 www. NEWSBASE .com P11