PetroChina Company Limited (ADR) (PTR)

NtscrbEnergy (79.18) Submitted: 6/07/07 12:51 AM : Start Price: $126.64 PTR Score: 4.38

PetroChina recently in January 2007 completed the acquisition of 67% of interests in PetroKazakhstan from its parent company China National Petroleum Corporation for consideration of $2.7 billion through CNPC Exploration and Development, a joint venture with CNPC. This acquisition further strengthens its growth potential across its international oil & gas reserves. PetroKazakhstan has interests in eleven fields at different stages of development as well as working interests in five exploration licenses covering a total area of over 16,000 sq km. PKZ also owns an oil refinery in Shymkent.





Under a production sharing contract, PetroChina and Shell China E&P are jointly developing the Changbei gas field, from which commercial production and gas delivery has already begun starting in March 2007. It provides natural gas to the markets of Beijing, Tianjin, Shandong and Hebei. It is expected that production will rise to the planned plateau rate of 3 billion cubic meters per year during 2008.





Also during March the company launched Beijing Oil and Gas Pipeline Network Dispatching Center, its oil and gas pipeline network dispatching system. The new system marks a great leap in PetroChina's centralized dispatching and controlling operation and integration of oil and gas transmission lines. It also helps the company achieve higher productivity and enhance operational safety. It would also gradually restructure PetroChina's dispatching and management operation in long distance pipeline network through integration and system revamp. Consequently, PTR will have a good year in 2007.

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