According to Reuters, PetroChina may leave projects in Australia and Canada.
According to sources cited by Reuters on Tuesday, PetroChina may sell its holdings in Canadian oil sands projects and Australian natural gas projects. According to reports, the Chinese corporation intends to reduce its losses and redirect money to projects in the Middle East, Africa, and central Asia.
According to the article, people with knowledge of the situation told the source that the firm plans to sell some of these properties in the next two years. These assets have racked up billions of dollars in losses and are located in markets where the company finds it difficult to compete.
“Australian gas assets – both Arrow Energy and Browse – are considered among the top ‘negative assets’ in PetroChina’s global portfolio,” one of the sources said.
Through a joint venture with Shell, PetroChina acquired Arrow Energy in 2010 for $2.5 billion as its initial investment in Australia’s coal seam gas industry. Three years later, the Chinese company paid $1.63 billion to acquire BHP’s interest in Browse, the largest undeveloped gas resource in Australia.
Due to losses in generating and turning the tar-like fuel into bitumen, the business is also attempting to sell its whole ownership of the MacKay River and Dover Oilsands operations in Canada, according to the sources.
Another Chinese oil company, CNOOC, prepared to shut down its businesses in Britain, Canada, and the US because of concern that the assets would come under Western sanctions. PetroChina’s sales plan is in line with this strategic change.