外国人对中国非常规油气的看法

smartdou

China Gets Serious About Shale - Sinopec, Weatherford Form JV

China's Sinopec has announced it is forming a joint venture that could givethe company the leading edge in the effort to exploit the country's potentiallyvast shale resources. The joint venture will be the largest of its kind inChina, reflecting the eagerness of the Asian nation to explore and developshale resources in the wake of the NAM unconventional revolution.

The joint venture will be formed with US-based Weatherford Internationaland consist of an oilfield services company which will unite Weatherford'stechnological and management expertise with Sinopec's efforts to expand itsupstream segment, according to industry officials.

Thus far, Sinopec has drilled almost 30 pilot shale gas wells in the Fuling region.

A shale well in trial operation at the Fuling work zone; Source:xinhuanet.com

China is believed to hold the world's largest technically recoverable shalegas reserves. But in its efforts to replicate the NAM shale revolution, thecountry is beset with environmental and technological obstacles caused by highpopulation density, complex geology, and chronic water shortages.

The principal challenge for both PetroChina and Sinopec is to reduce thedrilling cost per well to under $8 million, half the current high rates whichaverage roughly 80-100 yuan, analysts say.

This necessitates a factory-style operation and technological improvementsto lessen the drilling time for a single well from 100 days to 89 days.

China produced around 113 bcm of natural gas last year, of which shale gaswas a small 200 bcm, according to official data.

This state of things provides the "Big 4" oilfield servicescompanies - Schlumberger, Halliburton, Baker Hughes, and Weatherford (indescending order per market share)- an ideal opportunity to surmount China'saforementioned domestic hurdles and widen the companies' footprints in theregion.

Q&A Exchange:What is the biggest challenge facing international shale development?

Earlier this year, Sinopec reported a commercial shale gas discovery atSouthwest China's Fuling area. This immediately buoyed hopes that China is onthe cusp of a breakthrough in accessing the unconventional resource.

The discovery also positioned Sinopec as an early leader in developingshale gas resources, forcing its principal rival PetroChina to achieve anational output target previously believed to be overly ambitious.

PetroChina, Asia'slargest O&G producer, plans to spend more than $1.6 billion on shale gas in2014. Additionally, the company has raised its 2015 shale gas output objectiveto 2.6 bcm, up from the previous 1.5 bcm, according to a government source anda company official. This would represent only approximately 2.3% of China'stotal natural gas output of about 113 bcm in 2013.

The JV will encompass technical services to oil and gas drilling and wellcompletion, as well as the manufacturing of tools, according to a statementissued by Sinopec.

No financial details were revealed in the statement, but two sourcesinformed Reuters news agency that the JV has a registered capital of more than$50 million.

The agreement was inked between Sinopec Oilfield Service Company (SOSC),Weatherford, and Shengli Highland. The latter is a JV between Weatherford and aSinopec unit that produces drilling tools.

file:///C:/Users/w/AppData/Local/Temp/msohtmlclip1/01/clip_image004.gif

China's main shale basins. The Chinese claim that the country's shalenatural resource base surpasses 1,000 Tcf; Source: pacwestcp.com

A SOSC official said, "The joint venture will initially focus ondeveloping high-end products such as those used for high-temperature andhigh-pressure shale gas drilling." The official said further that the JVwill also cover overseas operations.

The Chinese government has established shale gas production targets at 6.5bcm for 2015 and at 60-100 bcm for 2020.

These targets are regarded as highly ambitious by many industry experts.

Despite the government's ambitious plans, thus far all of China's attemptsto exploit its abundant shale resources have not yielded results. In fact,while there are thousands of shale wells in the US, there are only a handfulproducing commercial quantities of gas in the whole of the rest of the world.

Some experts say thatit will be between 8 and 10 years before China is able to produce a significantquantity of shale energy, let alone enough to impact the overall price of gas.

PetroChina Seeks To Outpace Key Rival In Early China Shale Sprint

PetroChina, Asia's largest O&G producer, plansto spend more than $1.6 billion on shale gas in 2014, as domestic competitionintensifies after rival Sinopec's recent announcement of a commercialdiscovery, sources revealed to Reuters news agency.

Confronted with exorbitant drilling costs and thecomplexity inherent in trying to access shale gas, China has struggled torevitalize its energy supplies. China seeks to unlock what could very well bethe largest shale gas reserves in the world.

PetroChina's decision to triple its shale gas spendingfrom expenditures on the unconventional resource over the past few years comesonly months after Sinopec buoyed hopes that China is on the cusp of abreakthrough by announcing a commercial discovery.

file:///C:/Users/w/AppData/Local/Temp/msohtmlclip1/01/clip_image006.gif

Additionally, PetroChina has raised its 2015 shale gasoutput objective to 2.6 bcm, up from the previous 1.5 bcm, according to agovernment source and a company official. This would represent onlyapproximately 2.3% of China's total natural gas output of about 113 bcm in2013.

A government source told Reuters, "PetroChina wantsto play catch up after Sinopec's success."

PetroChina has spent approximately $483 million since2010 on pilot shale drilling, according to the sources. The company, which isresponsible for roughly 70% of China's total natural gas output, has thus farlargely focused on expanding its conventional oil and gas portfolio.

The sources told Reuters that PetroChina will focus ontwo pilot zones: Weiyuan-Changning in southwest Sichuan basin and Zhaotong inYunnan province.

Mao Zefeng, joint company secretary of PetroChina,commented, "PetroChina has over the past four years improved understandingof the shale resources and achieved some technological breakthroughs...We'restepping up shale development this year."

Sinopec's shale operations has been focused on the Fulingregion of Chongqing in southwest China, which is also part of the Sichuanbasin. Thus far, Sinopec has drilled almost 30 pilot shale gas wells in theFuling region.

The principal challenge for both PetroChina and Sinopecis to reduce the drilling cost per well to under $8 million, half the currenthigh rates which average roughly 80-100 yuan, analysts say.

This necessitates a factory-style operation andtechnological improvements to lessen the drilling time for a single well from100 days to 89 days.

China produced around 113 bcm of natural gas last year,of which shale gas was a small 200 bcm, according to official data.

The Chinese government has established shale gas productiontargets at 6.5 bcm for 2015 and at 60-100 bcm for 2020.

China holds an estimated 1,115 Tcf of shale gas reserves.The aforementioned shale gas production targets are regarded as highlyambitious by many industry experts.

But despite the government's ambitious plans, thus farall of China's attempts to exploit its abundant shale resources have notyielded results. In fact, while there are thousands of shale wells in the US,there are only a handful producing commercial quantities of gas in the whole ofthe rest of the world.

Some experts say that it will be between 8 and 10 yearsbefore China is able to produce a significant quantity of shale energy, letalone enough to impact the overall price of gas.

Just The Beginning? Shell's Expanding China Footprint Marks Broader Trend

China's CNPC and Shell haveinked an agreement to strengthen cooperation in sectors such as deep seaexploration, as well as LNG and unconventional gas sources like shale, theChina state-run company announced Wednesday.

CNPC said on its website thatthe two companies have agreed to work collaboratively in the development ofboth upstream and downstream energy businesses.

In his first overseas visitsince becoming Shell's CEO, Ben van Buerden told CNPC Chairman Zhou Jiping thatboth sides have established deep and wide-ranging ties and have significant roomfor ongoing cooperation.

Shell is already one of thelargest overseas investors in China's O&G sector. The company could beideally placed to take advantage of China's plans to grant foreign businessesmore access to its domestic market.

Shell is already joining CNPCto explore and develop shale gas in China's western regions.

file:///C:/Users/w/AppData/Local/Temp/msohtmlclip1/01/clip_image008.jpg

China's key shale basins

Shell hopes to employ theoperational and technical experience it gained during the development of shalegas in North America, while CNPC holds China's premium O&G acreage.

Shell also intends to joinCNPC in the construction of a $12.6 billion refinery and petrochemical facilityin eastern China. This project could very well become the single largestforeign investment in the country.

The Anglo-Dutch major is alsoa major supplier of LNG to China, securing gas from its worldwide gas fields inQatar, Australia, and elsewhere.

Last month, CNPC's ChairmanZhou Jiping said that the energy giant plans to open six business areas toprivate investors. This announcement came in the wake of a prior decision ofSinopec Corp to open up its retail segment to non-state partners.

China's government iscurrently pushing giant, state-owned companies, in sectors such astelecommunications and energy, to become more efficient by bringing innon-state investors.

Jiping says CNPC will seekjoint investment from non-state sectors to build pipelines, accessunconventional oil and gas reserves, and construct oil refining and chemicalcomplexes.

Wednesday's announcement of Shell and CNPC's partnership is a manifestation of this broader effort of theChinese government to pursue this aforementioned policy, and is also consonantwith CNPC's definition of 2014 as the "year of reform."

The company has establishednine task forces to focus on six key areas of reform.

In March, a Chinese newspaperwas informed by anonymous sources that the reforms will seek to define thefunctions of the company and engage in asset reorganization and professionaltalent management, among other changes.

One of the sources told thepaper, "CNPC has made up its mind to push for the reform but it willsurely face lots of obstacles to realize its goals."

Since CNPC's founding in1998, the company has gone through several reforms to help it transform into amarketized operation, but critics have continually focused on its positioningof itself as a monopoly.

Over the past decade, therehave been aggressive calls for reforms to China's domestic energy sector but tomany observers these attempts have yielded inadequate results.

The calls for reform haveintensified in the wake of China's ongoing anti-corruption efforts. A number ofCNPC officials have already been caught in the crackdown.

Last September, Chinareplaced former CNPC chairman Jiang Jiemin as head of the state-run AssetsSupervision and Administration Commission. He is presently under investigationfor alleged "serious violation of discipline." That's a CommunistParty code-word for graft.

CNPC stated that it will nowimprove security and environmental protection mechanisms. It will also attemptto implement a new board meeting mechanism, corporate governance under a sharelimited company, and simplify the screening process, the newspaper reported.

CNPC will also broaden itscooperation with private capital companies to form JV-operations so as tobecome a first-tier IOC.

Presently, CNPC is listed asone of the world's top oil companies in terms of asset scale. However,regarding profitability and management efficiency, it still confronts a largegap with the leading IOCs.

CNPC said that its totalinvestments will fall in 2014. Instead, the company will seek progress with itscurrent operations.

In 2013, CNPC's totaldomestic and offshore O&G production achieved 238 million tonnes, up 5.3%from 2012, while its investment return has been falling since 2005, reaching aslow as 8.2% in 2012.

zhj_0072

学习了