By Winnie Zhu
Dec. 18 (Bloomberg) -- China National Petroleum Corp., the nation's biggest oil company, said it may slash investment in projects by at least 10 percent next year because of the global recession. The shares of unit PetroChina Co. fell in Hong Kong.
``The global financial crisis and slowdown of the domestic economy are forcing us to optimize investment with higher returns,'' Zhou Jiping, vice general manager of China National, said in a statement on its Web site today. Zhou didn't say if the possible investment cut would apply to overall spending or specific projects.
China National said on Dec. 16 that market uncertainties and the slowing global economy will make 2009 a ``difficult year.'' The oil producer echoed comments earlier this month by China Petroleum & Chemical Corp., the Hong Kong-listed unit of China Petrochemical Corp.
PetroChina shares fell as much as 1.8 percent to HK$7.07 in Hong Kong today and were at HK$7.17 at 2:31 p.m. local time.
The Chinese economy, the world's fourth-largest, grew at the slowest pace in five years in the third quarter as exports waned amid the global credit crisis. Oil in New York has slumped 73 percent from July's record of $147.27 a barrel.
Beijing-based China National said on Dec. 16 that risks in overseas expansion have risen. The oil producer is bidding for Canadian-listed Verenex Energy Inc. in a transaction valued at as much as $300 million, the South China Morning Post reported. Verenex owns oil and gas deposits in Libya, the report said.
To contact the reporter on this story: Winnie Zhu in Shanghai at Wzhu4@bloomberg.net.
Posts
No comments:
Post a Comment