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September 18 – According to the Associated Press, the U.S. State Department confirmed that it has approved Iranian President Peshizian and Iranian Foreign Minister Araqchi, along with other senior officials, to travel to New York for next weeks high-level meeting of the United Nations General Assembly. The State Department stated that the Iranian "core delegation" and essential personnel will be allowed to attend the General Assembly activities, but will be subject to travel restrictions and will be prohibited from purchasing luxury goods and other restricted items in accordance with U.S. policy. The U.S. stated that this years Iranian delegation is smaller than last years. This decision was made against the backdrop of the ongoing U.S.-Iran conflict, which has lasted for more than six months. Currently, there has been no significant progress between the two sides on reopening the Strait of Hormuz and resuming negotiations on the Iranian nuclear issue. As the host country of the United Nations, the United States is usually bound by obligations to the host country and finds it difficult to prevent foreign leaders from attending the General Assembly. Previously, the United States has also issued limited visas to representatives of countries involved in conflicts and imposed restrictions on their activities. This decision to approve the Iranian delegations visas comes just one day after the U.S. refused to allow Palestinian President Mahmoud Abbas and his delegation to the General Assembly.A U.S. State Department spokesperson said that the core delegation of the Iranian regime will be able to attend the high-level week of the UN General Assembly.U.S. State Department: Washington has issued visas to Iran to attend a United Nations meeting.Houthi rebels in Yemen: In the past 24 hours, the Saudi Air Force launched 37 airstrikes on Taiz and Hodeidah provinces in Yemen, using F-15 fighter jets that took off from Khamis Mushait Air Base, causing civilian casualties.ExxonMobil (XOM.N): A power outage occurred at its refinery in Joliet, Illinois. Flooding caused the pumping stations at the Joliet refinery to be submerged.

Sources suggest that PetroChina might sell assets in Australia and Canada to stem its losses

Aria Thomas

Jun 29, 2022 10:42


According to two persons with knowledge of the matter, PetroChina may sell natural gas projects in Australia and oil sands in Canada to minimize losses and shift financing to more lucrative regions in the Middle East, Africa, and central Asia.


PetroChina's plan follows a similar strategy shift by a smaller state rival, CNOOC (NYSE:CEO) Ltd, which was prepared to abandon its operations in the United Kingdom, Canada, and the United States because of concern that these assets may become susceptible to Western sanctions.


The transactions are the outcome of an internal examination of PetroChina's global portfolio that began last year, according to two unidentified individuals who refused to be identified due to the sensitivity of the subject.


As it does not own any oil and gas assets in the United States, unlike CNOOC, PetroChina's divestments are driven more by the assets' poor economics than by a fear of U.S. sanctions, but political tensions with Australia and Canada also played a part, they noted.


According to sources, the state-owned oil and gas firm intends to sell some of these assets, which have lost billions of dollars and are situated in uncompetitive locations, over the next two years.


"Australian gas assets Arrow Energy and Browse are among the top "negative assets" in PetroChina's global portfolio. According to one report, CNPC has a small competitive edge in this industry.


In 2010, PetroChina purchased Arrow Energy for $2.5 billion in a joint venture with Shell (LON:RDSa), marking its first investment in Australia's coal seam gas sector. It paid $1.63 billion in 2013 for BHP's investment in Browse, the largest undeveloped gas reservoir in Australia.


According to reports, the company is also contemplating selling its Canadian oil sands assets, MacKay River Oilsands and Dover (NYSE:DOV) Oilsands, owing to losses incurred from producing and processing bitumen. PetroChina declined to comment.


China's state-owned energy companies were among the most acquisitive in the industry during the beginning of the 2010s, as shown by CNOOC's $15 billion purchase of Canadian oil and gas company Nexen in 2013. However, they grew more subdued with the oil price fall in 2014-2015 and the government's financial audit.


In addition, economic worries may have caused PetroChina to reevaluate its acquisitions spree.


Arrow is PetroChina's most unprofitable offshore investment. If Browse receives final approval, it is unlikely to enter production until 2030 because to its technical complexity.


In 2020, Arrow made a final investment decision to construct the 5 trillion-cubic-foot Queensland Surat Gas Project. A dispute between PetroChina and Shell over the pricing of gas to a Shell-operated export facility reportedly caused the delay.


Arrow experienced losses of about A$3.3 billion ($2.29 billion) between 2018 and 2021, including A$2.2 billion in impairments.


When reached by Reuters, a representative for Arrow said, "The investment decisions of our shareholders are their responsibility, and Arrow would neither comment nor speculate on such topics."


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