The outbreak of COVID-19 led to a severe contraction of demand for oil, gas and chemical products, and a plunge in international oil prices. Amid the complex and severe situation, PetroChina coordinated and implemented a series of work including COVID-19 prevention and control, resumption of work and production, as well as production and operation, and reform and development. At the same time, the Company vigorously enhanced quality and profitability, strictly controlled costs and capital expenditures, minimized the loss induced by COVID-19 and low oil prices, and maintained overall smooth operation of the oil and gas industrial chain. 

PetroChina recorded a revenue of RMB929,045 million in the first half of 2020, representing a decrease of 22.3% year on year. Net loss attributable to owners of the Company was RMB29,983 million, of which the loss in the second quarter narrowed compared to the first quarter, indicating a steady improvement of business trend. The Exploration and Production segment achieved an operating profit of RMB10,351 million. The Refining and Chemicals segment recorded an operating loss of RMB10,540 million, of which, the refining operations recorded an operating loss of RMB13,644 million while the chemical operations realized an operating profit of RMB3,104 million. The Marketing segment recorded an operating loss of RMB12,892 million, while the Natural Gas and Pipeline segment achieved an operating profit of RMB14,372 million. The Company stringently controlled expenses and capital expenditures, and its financial position was overall stable. Capital expenditures amounted to RMB74,761 million in the first half of 2020, representing a decrease of 11.0%. The estimated capital expenditure for the whole year of 2020 is RMB228.5 billion, representing a decrease of 23.0% from RMB296.776 billion for the year of 2019. In overall consideration of factors such as the operating results, financial condition, cash flow and expected gains from pipeline assets restructuring of the Company, the Board has resolved to declare an interim dividend of RMB0.08742
yuan per share in order to secure a better return for shareholders. The total amount of the interim dividends payable was RMB16 billion. 

Upstream

The Company continued to strengthen the management of investment, reserves and costs as a whole, and strived to control and reduce investment. It also rigorously tightened operating cost, resulting in an increase of profitable reserves. During the first half of the year, the Company optimized the deployment of exploration activities, risk exploration and concentrated exploration made important discoveries and progress. High-yield oil and gas flow was obtained from Tarim Manshen No.1 well, representing a major breakthrough in ultra-deep oil and gas exploration in the hinterland of the basin. In addition, a batch of risk exploration wells such as Sichuan Pengtan No.1, Tarim Luntan No.1, and Junggar Shatan No.2, etc. achieved new breakthroughs and opened up a new area of oil and gas exploration. The overseas oil and gas business made steady progress, with the risk exploration of the Chad project and the progressive exploration of the Kazakhstan PK project achieving new breakthroughs and making progress. Meanwhile, the Company continued to devote great efforts to existing projects in the Middle East, Central Asia, America, the Asia-Pacific region and other joint cooperation areas, with the aim of ensuring qualitative and effective development. In the first half of 2020, the Company’s total crude oil output amounted to 475 million barrels, representing an increase of 5.2% compared with last year. The marketable natural gas output reached 2,150 billion cubic feet, representing a rise of 9.4% compared with last year. The oil and natural gas equivalent output amounted to 834 million barrels, representing a growth of 7.0% compared with last year. The Company continued to strengthen cost control, and the oil and gas lifting cost was US$9.64 per barrel, representing a decrease of 14.0% year on year.

Outlook

Looking ahead to the second half of 2020, despite the severe situation of COVID-19 prevention and control, and the uncertainty about the recovery of the world economy and rebound of crude oil market, with the gradual pick up of China’s economy, the demand for oil and gas is expected to stabilize. The Company will maintain its strategic consistency, strengthen bottom-line thinking, and adhere to its quality-based development. It will also stick to the governance principles of professional development, market-oriented operation, precise management, and integrated coordination. While advancing to deeply promote the construction of the oil and gas production, supply, storage and sales system, and deepening reform and innovation, the Company will pay more attention to green and low carbon development, digital transformation, intelligent development as well as value creation, fulfilling the annual objectives and tasks of production and operation.

KeyFacts Energy: PetroChina China country profile