PetroChina thinks about selling off its Western holdings
(MENAFN) 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.
Based on the article, people with knowledge of the situation informed the source that the corporation 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 corporation finds it difficult to compete.
Among the sources, one noted that “Australian gas assets – both Arrow Energy and Browse – are considered among the top ‘negative assets’ in PetroChina’s global portfolio.”
Through a joint venture with Shell, PetroChina acquired Arrow Energy in 2010 for USD2.5 billion as its initial investment in Australia's coal seam gas industry. Three years later, the Chinese company paid USD1.63 billion to acquire BHP's interest in Browse, the biggest undeveloped gas reserve in Australia.
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