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Transcript of PetroChina
Backed by government
Protected from competition
Strong financial performance
Growing demand for oil in China Considering- We Recommend... INVEST INVEST November 5th, 1999: Established as joint stock company with limited liabilities by China National Petroleum Corporation April 6, 2000: Listed on NYSE April 7, 2000: Listed on HKE November 5, 2007: Listed on SSE 2005: 7th Top Global Petroleum Company 2000: Establish fuel stations in 12 pioneer cities Septmeber 24, 2009: Dushanzi District refinery opened as China's largest refinery CNPC provided the newly formed PetroChina with all needed assets A Government Born Company China National Petroleum Corporation (CNPC) established September 1988
State owned and controlled petroleum company
1990s CNPC incurred large debt obligations
Solution: partially public subsidiary to raise capital
PetroChina - A Rapidly Developing Company Exploration & Production of Crude Oil
Largest national producer Refining
Kerosene Chemical Products
Secondary Derivative chemicals Natural Gas
Largest domestic provider Advantages International Competition Catch up to #1:
Take advantage of the slip of Production Stock Vertically Integrated
Economies of Scale
Control Production and Quality
Vast Network of Pipelines
Transports Millions of Barrels
A “Greener” PetroChina” Advantages Weaknesses Location of Operations
Susceptible to Geopolitical instability
Capacity to handle crisis Weaknesses Areas for Concern Over 500,000 Employees
Rising Labor Costs
85% Ownership by CNPC
Never Truly Free Operational Objective Plan Phase 1
Strengthen core businesses
Maintain market leader position in China
Sustainable and rapid development Phase 2
Increase market presence in China
Strengthen position in global oil markets
Become a global producer and distributor of petroleum and petrochemicals Development Strategy 1) Resources Strategy
-Maintain operations in the petroleum and petrochemical fields
-Exploration of domestic and offshore resources
-Gain access to additional global resources through acquisitions
2) Markets Strategy
-Continue role as significant leader in the market
-Expand and exploit competitive advantage in domestic and foreign markets
3) Internationalization Strategy Internationalization Strategy 2002: Devon Energy Indonesian oil & gas operations
2009: 45% of Singapore Petroleum Company’s shares
2010: Oil and sand assets from Canada Athabasca Oil SandsCorp Joint Ventures 2010: Acquired Australian Arrow Energy Limited
2010: Total Exploration and Production Company in Iraq
2011:INEOS, one of the world’s largest petrochemical companies based in the UK Oil and gas exploration and development 2007: CNPC and Sudanese government
2008: CNPC and Chad government
2009: CNPC contract with the National Iranian Oil Co "Establish core areas of clustered, high quality operations with strong reserves bases which will be achieved by acquiring key global petro companies." Acquisitions Global Investor Group Exponential Growth Rate Global Investment Group Jiang Jiemin
Aged 52, is the Chairman of the company and the General Manager of CNPC $7.54 billion $15.41 billion $149 billion PetroChina Dominates Domestic Market Young, government linked corporation PetroChina Domestic petroleum giant Secured resources and expected increasing profits Plans to leverage CNPC ties and financial resources to grow internationally and take on global petro giants Thank You.
Questions? $60 billion for Future Acquisitions Not Slowing Down...