Company report
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25 Pages

CNPC corporate report

CNPC corporate report

Report summary

CNPC's strategic direction has changed over the last two years. Rising costs and Chinese government scrutiny saw the company move away from an increasingly bold international expansion, even before the oil price crash of H2 2014. Lower oil prices and weaker economic growth in China have seen further retrenchment. PetroChina, CNPC's principal subsidiary, has reduced its 2015 investment budget twice and cut its dividend. Meanwhile CNPC has put international M&A on hold. The near-term priorities are cost cutting and efficiency in the face of weaker fundamentals. But there are signs that CNPC could also be considering counter-cyclical moves – PetroChina's chairman has indicated a return to M&A is an option. 

What's included?

This report includes 2 file(s)

  • CNPC corporate report PDF - 1001.45 KB 25 Pages, 8 Tables, 25 Figures
  • CNPC-PetroChina Corporate Report.xls XLS - 4.03 MB


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
    • SWOT Analysis
      • Organisational Structure
  • Strategy
    • Recent strategic moves
    • Investment was falling before the drop in oil prices
    • Low oil prices has seen further retrenchment on spending
    • Current strategic positioning
      • 1. Near-term business restructuring
      • 2. Counter-cyclical new business development
      • 3. Longer-term operational capability development
  • Financial health
    • Financial health overview
      • Cash flow breakeven outlook
  • Investment
    • Investment overview
    • Development pipeline
  • Resources, reserves and production
    • Resources and Reserves Overview
    • Production overview
  • Key success factors
  • Economic assumptions

In this report there are 33 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Strategy
    • Benchmarking: share price performance
    • Benchmarking: evolution of market premium / discount to Wood Mackenzie NPV,10
    • Strategic fit of upstream regions
    • Benchmarking: NPV,10 by resource theme
    • Benchmarking: exposure to key resource themes (weightings versus Majors' average)
    • Benchmarking: production CAGR
    • Benchmarking: indexed production outlook
    • Benchmarking: international portfolio country risk exposure
    • Country distribution of assets with NPV, 10 < US$200 million
    • CNPC: production by resource theme
    • Benchmark: evolution of upstream NPV,10
    • Benchmark: net acreage in key deepwater exploration provinces
    • Benchmark: Chinese NOC M&A deal value
  • Financial health
    • Cash flow breakevens (PetroChina)
    • Benchmarking: upstream cash flow breakevens (average 2016/2017)
    • Evolution of year-end net cash (CNPC)
    • Breakdown of upstream cash flow by country
  • Investment
    • CNPC: capital investment (2015 to 2020)
    • Top international probable projects by projected capex (to 2020)
  • Resources, reserves and production
    • Reserves and resource detail
    • Benchmarking: reserves and resources detail
    • Benchmarking: reserves and resources life
    • Resources, reserves and production: Image 4
  • Key success factors
    • Top legacy assets by value
    • Key growth assets by value
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Economic assumptions: Image 1
    • Economic assumptions: Image 2
    • High price assumptions
    • Low price assumptions
    • Valuation assumptions
    • Foreign exchange rate assumptions
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