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According to Japans Asahi Shimbun: Japanese Prime Minister Shigeru Ishiba aims to push forward tariff agreement negotiations in July.On May 11, industry insiders said that flying cars are at the critical point of industrial explosion, and technology, policies, and market demand have formed a resonance. From demonstration operation to large-scale popularization, it is still necessary to overcome the three tests of technological maturity, regulatory perfection, and user acceptance. In the future, flying cars may reconstruct the three-dimensional urban transportation system and make "air travel" a daily routine.Conflict situation: 1. Russian Defense Ministry: Russian troops continue to strictly abide by the ceasefire system and remain in the previously occupied fronts and positions. 2. Russian Defense Ministry: Ukrainian troops have violated the ceasefire agreement 9,318 times and attempted to break through the Russian border in Kursk and Belgorod regions four times. 3. Peskov: The three-day ceasefire has ended and no ceasefire measures have been seen from the Ukrainian side. Peace talks: 1. Leaders of many European countries arrived in Kiev, Ukraine for a visit. 2. Leaders of four European countries called for a 30-day ceasefire between Russia and Ukraine. 3. Ukrainian Foreign Minister: Ukraine is ready to unconditionally ceasefire for at least 30 days. 4. Putin proposed to resume direct negotiations between Russia and Ukraine in Turkey on the 15th. Other situations: 1. Zelensky: Russia is showing that it is unwilling to end the conflict, and the "coalition of the willing" must increase investment in Ukraines defense to ensure that Russia abides by the rules in the event of a ceasefire. 2. Ukrainian and European leaders: If Russia fails to abide by the ceasefire agreement, large-scale sanctions will be imposed and military aid (to Ukraine) will be increased. If a 30-day ceasefire is achieved, peace talks will begin during this period. 3. French President Macron: The United States will monitor the implementation of the ceasefire agreement in Ukraine. 4. Russian Presidents Press Secretary: Russia is accustomed to sanctions and knows how to minimize the consequences of sanctions. 5. The Kremlin: The statements of European countries have "confrontational characteristics."On May 10, local time, Russian Presidents Press Secretary Peskov said that Russia is actively developing relations with many countries and will continue to do so. Peskov pointed out that it is very difficult to isolate Russia because Russia occupies a very important position in the world. In addition, Peskov also said that Russian President Putin is willing to engage with leaders of any country in the world, and he is willing to interact to the extent that they are ready to cooperate.On May 10, California Governor Gavin Newsom criticized the U.S. federal government in a video posted on social media. He said that the U.S. governments current tariff policy "may cause the United States to lose its position as the worlds largest economy." In the video, he criticized the U.S. governments tariff policy for blocking U.S. imports and directly affecting the daily lives of ordinary people. "In a few months, people will lack school bags and Christmas toys. Tariffs will make American families even worse." Newsom said that as the state with the strongest economic power in the United States, California occupies an important position in the global economy, precisely because California is committed to "reducing trade barriers and providing quality services to American consumers", but the current tariff policy is undermining all of this, leading to rising prices and stagnation at ports.

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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