2022-03-28 11:50:00
RUSSIAN ASSETS WITHOUT RISKS
REUTERS- March 28 - China's state oil and gas major Sinopec Corp sees no immediate risk of impairment of the firm's assets in Russia amid the Ukraine crisis, a top company executive said on Monday.
Reuters reported on Friday that Sinopec Group, parent of Sinopec Corp, stalled on a new gas chemical project and natural gas marketing venture, heeding a government call for caution as sanctions mount over the invasion of Ukraine.
"Currently the company's operations and business in Russia are largely running smooth and there are no signs of asset impairment," Sinopec's President Yu Baocai told investors and reporters during a call following its 2021 earnings release.
Yu sidestepped questions about company's interest in purchasing Russian oil and gas. Sinopec has been a top buyer of Russian crude oil, which is now facing steep discounts as sanction-wary buyers shied away.
Sinopec, which reported its biggest profit in a decade for 2021, will prioritize growing oil and gas production, cashing in on oil prices that have gained 51% this year amid fears of supply disruption in the wake of Russia's invasion of Ukraine.
"The high oil prices represent a good opportunity to raise oil and gas production and profitability," said Sinopec's chairman, Ma Yongsheng, who reaffirmed a long-term strategy to maintain "relatively high" growth in natural gas, output of which expanded 12% last year.
Part of the record $31 billion in capital spending planned for 2022 would go toward more discoveries in geologically difficult shale oil and gas resources, Ma said.
Separately, Sinopec pledged to cut methane emission intensity - a measure of methane emissions relative to natural gas throughput - by 50% in 2025 versus 2020 levels.
Under of a goal of becoming a carbon-neutral energy provider by 2050, Sinopec has achieved "remarkable progress" in hydrogen energy, including developing hydrogen retail network and making so-called green hydrogen from solar and wind power, Ma said. He did not offer a detailed update on that front.
Sinopec last year vowed to spend $4.6 billion on hydrogen energy by 2025, including making 1 million tonnes of green hydrogen between 2021 and 2025, a target that now appears overly ambitious against a latest national target of 100,000-200,000 tonnes by 2025.
The company also said it achieved 30 billion yuan ($4.71 billion) worth of inventory gains in crude oil and refined fuel over last year.
($1 = 6.3750 Chinese yuan renminbi)
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Earlier:
2022, March, 23, 12:05:00
RUSSIAN URALS DISCOUNT $31
Russian Urals cargoes basis CIF Rotterdam were assessed at a new record low of Dated Brent minus $30.99/b and for CIF Augusta at Dated Brent minus $30.69/b March 23.
2022, March, 22, 12:45:00
RUSSIA BYPASSES SANCTIONS
"If oil is sold at a discount, then [consumers] will be happy to buy it. We will earn less, but we will be able to place oil," Novak said.
2022, March, 21, 12:10:00
RUSSIAN OIL TO CHINA DOWN
Russian inflows to China hit a nine-month low of 1.42 million b/d in February, down 26.1% year on year and more than 25% month on month.
2022, March, 15, 15:20:00
RUSSIA IS A KEY
In 2021, Russia was the largest natural gas-exporting country in the world, the second-largest crude oil and condensates-exporting country after Saudi Arabia, and the third-largest coal-exporting country behind Indonesia and Australia.
2022, March, 14, 11:50:00
RUSSIA GUARANTEES ENERGY SECURITY
"Russia remains a reliable supplier, a world-class guarantor of energy security. We value this reputation, but are ready for a harsh confrontation in the energy sector, if the need arises,"
2022, March, 9, 13:35:00
RUSSIAN OIL & EARNINGS UP
Despite the high discount on Russia's Ural oil premium and sanctions .It seems that the rise in oil prices will eventually lead to the growth of Russia's foreign exchange earnings in 2022 and the improvement of its foreign exchange reserves, which is contrary to the goals of Western sanctions and USA.
2021, December, 27, 11:50:00
RUSSIA'S OIL PRODUCTION WILL UP TO 11 MBD
The country's oil production is set to reach the pre-pandemic level by May next year, as the OPEC+ alliance continues to increase output monthly to meet rising demand.
