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China`s Quest for Energy Security - Chinese NOCs Emerging as Key Competitors to Global Oil and Gas Companies

Published By :

GlobalData

Published Date : Nov 2010

Category :

Natural Gas

No. of Pages : 69 Pages


Global Datas new report, China's Quest For Energy Security Chinese NOCs Emerging as Key Competitors to Global Oil and Gas Companies analyses the growth and expansion of Chinas National Oil Companies (NOCs) in the global oil and gas market to secure the future energy needs of the country. The report highlights the widening demand-supply gap in Chinas primary energy sector and the countrys efforts to bridge the gap through imports. The report details overseas projects and Merger and Acquisitions (M&A) activities of Chinas NOCs in various countries across the world. The report also traces the growth and integration of Chinas NOCs in both domestic and foreign markets, with a focus on factors that are driving the overseas expansion of Chinas NOCs. The report delves deep into the competing strategies adopted by Chinas NOCs to beat competition to acquire oil and gas assets in foreign markets. It compares the growth of Chinas NOCs with International Oil Companies (IOCs) in terms of operational parameters and financial parameters. It also discusses in detail the major acquisitions of Chinas NOCs in global energy markets in recent years. The impact of Chinas overseas growth on NOCs from other developing countries has also been analyzed in the report, with a focus on major M&A activities by different NOCs.

Scope

  • The report provides a detailed analysis of the growth and expansion of Chinas NOCs to secure future energy needs of China and the global expansion strategies adopted by these companies. It provides 
  • Analysis of Chinas energy sector, with a focus on crude oil and natural gas reserves, production and consumption trends, and forecasts until 2020, as well as Chinas primary energy portfolio 
  • In-depth analysis of the growth and expansion of Chinas NOCs in the hydrocarbon markets of major regions of the world
  • Rationale and strategies of international expansions of Chinas NOCs to compete with IOCs
  • Comparison of growth of Chinas NOCs with IOCs based on operational and financial parameters, detailing the growth in international operations 
  • Details of the role of Chinas NOCs in global oil and gas M&A activities during the period 2005-2009, discussing the major investments of these NOCs across the globe
  • Implications of growth and expansion of Chinas NOCs for NOCs from other developing countries 
  • The future investment plans of Chinas NOCs.

Reasons to buy

  • Obtain the most up to date information regarding China's plans to secure its future energy supplies
  • Identify growth segments and opportunities in China's energy market
  • Facilitate market analysis and forecasting of future supply, storage, processing and refining of oil & gas in China
  • Assess your Chinese competitors global growth strategies
  • Understand and respond to your Chinese competitors business structure, strategy and prospects in oil & gas business across the globe.
Table Of Content

1 Table of Contents 3
1.1 List of Tables 5
1.2 List of Figures 6

2 Introduction 7
2.1 Overview 7
2.2 GlobalData Report Guidance 7

3 China, Crude Oil and the Natural Gas Demand and Supply Scenario 8
3.1 China, Crude Oil and Natural Gas Supply Scenario 8
3.1.1 China, Crude Oil and Natural Gas Reserves, 2000-2009 8
3.1.2 China, Crude Oil Production, 2000-2020 10
3.1.3 China, Natural Gas Production, 2000-2020 11
3.2 China, Crude Oil and Natural Gas Demand Scenario 13
3.2.1 China, Primary Energy Portfolio, 2009 13
3.2.2 China, Crude Oil and Natural Gas Consumption, 2000-2020 14
3.2.3 China, Crude Oil and Natural Gas Imports, 2000-2020 15
3.3 Chinas Rising Consumption Necessitates Oil and Gas Supplies from Foreign Sources 17

4 Chinas Two-pronged Strategy to Attain Energy Security 19
4.1 Chinas Overseas Acquisitions of Crude Oil and Natural Gas Assets - M&A Activites and Investments 19
4.1.1 Acquisition of Foreign Oil and Gas Assets, Exploration and Production, 2005-2010 20
4.1.2 Acquisition of Foreign Oil and Gas Assets - Refineries, Storage and LNG Terminals 24
4.2 Investments in Overseas Crude Oil and Natural Gas Projects - Oil for Loans Program 25
4.2.1 Loan for Oil - Russia 26
4.2.2 Loan for Oil - Brazil 28
4.2.3 Loan for Oil - Venezuela 29
4.2.4 Loan for Oil - Kazakhstan 30
4.3 Major Roadblocks in Chinas Endeavours to Attain Energy Security 30
4.3.1 Social Obligations and Strategies Conflict with Commercial Objectives of Operational Efficiency and Profits. 30
4.3.2 Investment Protectionism in Resource-Rich Nations 30
4.3.3 Inadequate Experience and Technical Expertise in Managing International Projects 31

5 Chinas National Oil Companies: Growing Global Footprints 32
5.1 Restructuring and Integration of Chinas NOCs 32
5.1.1 Chinas NOCs, Growth in Reserves and Production, 2007-2009 35
5.1.2 Chinas National Oil Companies, Share of International Production of Crude Oil and Natural Gas, 2007-2009 37
5.1.3 Chinas National Oil Companies, Reserve to Production Ratio, 2005-2009 38
5.1.4 Chinas National Oil Companies: Planned Domestic Projects 40
5.2 Factors Driving International Expansion of Chinas NOCs 41
5.2.1 State-Led Efforts to Attain Energy Security 41
5.2.2 Diversification of Resource Base to Face Volatile Energy Markets 41
5.2.3 Growing Consumption of Chinas Energy Intensive Industry - Factory of the World 42
5.2.4 Ability to Raise Capital to Fund Projects Globally 42
5.2.5 Political and Strategic Ties to Direct Foreign Investment 43
5.3 Chinas National Oil Companies: Increasing Global Presence 44
5.3.1 Chinas National Oil Companies: Oil and Gas Operations and Reserves 44
5.3.2 Chinas National Oil Companies, Planned Overseas Projects, 2010-2015 45

6 Chinas NOCs Emerging as Major Competitors to International Oil Majors 46
6.1 Chinas NOCs Have Been Employing Different Strategies to Beat IOCs Across Different Resource -Rich Countries 46
6.1.1 Investment in Oil Assets and Collaboration with Governments in Politically Unstable Regions 46
6.1.2 Packaged Deals and Multiple Credits Offered to Sudan, Nigeria and Angola 47
6.1.3 Shared Experience: NOC-NOC Collaborations 47
6.1.4 Low Oil and Gas Prices Helped Chinas NOCs to Compete During Economic Downturn 49
6.2 Chinas NOCs and IOCs - Comparison of Key Operational and Finanacial Parameters. 50
6.2.1 Revenues of Chinas NOCs vs IOCs, 2008-2009 50
6.2.2 Share Prices of IOCs vs Chinas NOCs, $/Share, 2000-2009 51
6.2.3 Oil and Gas Reserves and Production of Chinas NOCs vs IOCs, MMboe, 2007-2009 52
6.2.4 Growth in Revenue per Barrel of Oil, Chinas NOCs vs IOCs, 2005-2009 56
6.3 Chinas NOCs Clinch Major Deals Globally 57
6.3.1 Sinopec Acquires Addax Petroleum for $7.17 Billion 57
6.3.2 Sinopec International Petroleum Buys 9% Interest in Syncrude Canada From ConocoPhillips Corporation 59
6.3.3 China National Petroleum and KazMunaiGaz Acquire Mangistaumunaigaz From Central Asia Petroleum 60
6.3.4 Iraqs Licensing Round 60
6.3.5 Chinas Foray into North Americas Unconventional Gas Markets 60

7 Chinese NOCs Accumulating Overseas Assets Implications for Other NOCs 62
7.1 Asian and Latin American NOCs: Overseas Investments and M&A 62
7.1.1 ONGC - M&A and Partnerships to Ensure Indias Energy Security 62
7.1.2 PETRONAS, M&A and Partnerships: Increasing Export Volumes 64
7.1.3 Petrobras, M&A and Partnerships - Leveraging On Deepwater Exploration Expertise 64
7.1.4 Gazprom, M&A and Partnerships: Diversification and Securing Gas Markets 65
7.1.5 PDVSA: M&A and Partnerships, Strengthening Political ties 65
7.2 Chinas NOCs Edge Out Asian NOCs for Acquisition Of Oil and Gas Assets 66

8 Appendix 67
8.1 Abbreviations 67
8.2 Methodology 67
8.2.1 Coverage 68
8.2.2 Secondary Research 68
8.2.3 Primary Research 68
8.2.4 Expert Panel Validation 69
8.3 Contact Us 69
8.4 Disclaimer 69

List of Table


Table 1: China , Crude Oil Reserves, Billion Barrels, 2000-2009 9
Table 2: China , Natural Gas Reserves, Trillion Cubic Feet (tcf), 2000-2009 10
Table 3: China, Crude Oil Production, Mbpd, 2000-2020 11
Table 4: China, Natural Gas Production, bcf, 2000-2020 12
Table 5: China, Primary Energy Portfolio, Million Tons of Oil Equivalent , 2009 13
Table 6: China, Crude Oil (Mbpd) and Natural Gas Consumption (bcf), 2000-2020 15
Table 7: China, Crude Oil and Natural Gas Imports, 2000-2020 16
Table 8: Chinas National Oil Companies, Major Deals By Value ($m)*, 2005-2010** 19
Table 9: China National Petroleum Corporation, Oil and Gas Assets in the Middle East, 2009 21
Table 10: China National Petroleum Corporation (CNPC), Oil and Gas Assets in Africa, 2009 21
Table 11: CNPCs Key Assets in Sudan, 2010 22
Table 12: Chinas Loan For Oil Program, Deals, 2009 26
Table 13: Russia, Crude Oil Reserves, Million Barrels of Oil Equivalent (MMboe), 2000-2009 27
Table 14: Brazil, Crude Oil Reserves (MMboe), 2000-2009 28
Table 15: Venezuela, Crude Oil Reserves (MMboe), 2000-2009 29
Table 16: Major Oil Producing Countries, Foreign Access to Proven Oil Reserves, 2009 31
Table 17: Chinas NOCs, Key Comparisons, 2008-2009 32
Table 18: CNOOOC Ltd, Oil and Gas Assets , 2009 34
Table 19: Chinas NOCs, Crude Oil and Natural Gas Reserves, MMboe, 2007-2009 35
Table 20: Chinas NOCs, Crude Oil and Natural Gas Production (MMboe), 2007-2009 36
Table 21: Chinas NOCs, Share (%) of Domestic and International Production of Crude Oil and Natural Gas, 2007-2009 37
Table 22: Chinas NOCs, Reserve to Production Ratio, Years, 2005-2009 38
Table 23: Chinas NOCs, Reserve to Production Ratio (%), 2005-2009 39
Table 24: Chinas NOCs, Domestic Planned Projects, LNG Regasification Terminals, 2010-2015 40
Table 25: Chinas NOCs , Domestic Planned Projects , Refineries , 2010-2015 40
Table 26: Chinas NOCs , Domestic Planned Projects , Oil Storage Terminals, 2010-2015 41
Table 27: Chinas NOCs, Planned Refineries in Foreign Locations, 2010-2015 45
Table 28: Chinas NOCs, Planned LNG Terminals in Foreign Locations, 2010-2015 45
Table 29: PDVSA, Recent Partnerships/ Joint Ventures/ Memorandum of Understanding (MOU), 2010 48
Table 30: Chinas NOCs , Recent Partnerships/ Joint Ventures/ Memorandum of Understanding , 2008-2010* 48
Table 31: Revenue per boe of Major Oil Producing Countries ($/bbl), 2008-2009 49
Table 32: Revenues of Major IOCs and Chinas NOCs ($m) and % Growth, 2008-2009 50
Table 33: Crude Oil and Natural Gas Reserves of Major IOCs vs Chinas NOCs, MMboe, 2007-2009 53
Table 34: Crude Oil and Natural Gas Production of Major IOCs vs Chinas NOCs, MMboe, 2007-2009 54
Table 35: Growth in Revenue Per Barrel of Oil, China s NOCs vs IOCs (%), 2005-2009 56
Table 36: Addax Petroleum Corporation, Crude Oil Production, Mbpd, 2008 58
Table 37: OVL, Overseas Producing Assets, 2009 62
Table 38: ONGC, Merger and Acquisitions and Asset Transactions, 2008-2010 63
Table 39: Petronas, Merger and Acquisitions and Asset Transactions, 2008-2010 64
Table 40: Gazprom , Deals and Partnerships Announced by Gazprom During 2008-2009 65
Table 41: PDVSA , NOC NOC Partnerships, 2008-2010 65
Table 42: Chinas NOCs Outbid Other NOCs, Deals, 2005-2010 66

List of Chart


Figure 1: China, Natural Gas Basins 9
Figure 2: China, Crude Oil and Natural Gas Reserves, 2000-2009 9
Figure 3: China, Crude Oil Production, Mbpd, 2000-2020 10
Figure 4: China, Natural Gas Production, bcf ,2000-2020 12
Figure 5: Contribution (%) of Primary Energy Sources in China, 2009 13
Figure 6: China, Crude Oil (Mbpd) and Natural Gas Consumption (bcf), 2000-2020 14
Figure 7: China, Crude Oil (Mbpd) and Natural Gas Imports (bcf), 2000-2020 16
Figure 8: Widening Gap Between Crude Oil Production and Consumption in China, Mbpd, 2000-2020 17
Figure 9: Growing Difference Between Natural Gas Production and Consumption in China, bcf,2000-2020 18
Figure 10: Chinas NOCS, Loan For Oil Programs, 2009 25
Figure 11: Russia, Crude Oil Reserves, Million Barrels of Oil Equivalent (MMboe), 2000-2009 27
Figure 12: Brazil, Crude Oil Reserves(MMboe), 2000-2009 28
Figure 13: Venezuela, Crude Oil Reserves (MMboe), 2000-2009 29
Figure 14: Chinas NOCs, Crude Oil and Natural Gas Reserves (MMboe), 2007-2009 35
Figure 15: Chinas NOCs, Crude Oil and Natural Gas Production (MMboe), 2007-2009 36
Figure 16: Chinas NOCs, Share (%) of Domestic and International Production of Crude Oil and Natural Gas, 2007-2009 37
Figure 17: Chinas NOCs, Reserve to Production Ratio, Years, 2005-2009 38
Figure 18: Chinas NOCs, Reserve to Production Ratio (%), 2005-2009 39
Figure 19: Chinas NOCs, Oil and Gas Reserves and Countries of Operations, 2009 44
Figure 20: Chinas NOCs, Competing Strategies Employed for Overseas Expansion 46
Figure 21: Average Monthly Crude Oil Prices ($/bbl), 2008-2009 49
Figure 22: Revenues of Major IOCs and Chinas NOCs ($m), 2008-2009 50
Figure 23: Average Annual Share Prices of IOCs and Chinas NOCs Listed on NYSE, $/Share, 2000-2009 51
Figure 24: Crude Oil and Natural Gas Reserves of Major IOCs vs Chinas NOCs, MMboe, 2007-2009 52
Figure 25: Crude Oil and Natural Gas Production of Major IOCs vsChinas NOCs, MMboe, 2007-2009 54
Figure 26: Growth in Revenue per Barrel of Oil, Chinas NOCs vsIOCs (%), 2005-2009 56
Figure 27: Chinas NOCs, Major Overseas Acquisitions, 2008-2010* 57
Figure 28: Lease Map of Syncrude Oil Sands Project 59
Figure 29: OVL, Overseas Assets Portfolio, 2009 63

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