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After losing billions, China may have had enough of Arrow Energy

Business

After losing billions on its Queensland business, PetroChina may be about to cut loose coal seam gas company Arrow Energy.

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Reports out of Asia suggests PetroChina is considering selling its Australian and Canadian business to cut losses while it diverts its attention to the Middle East, Africa and Asia.

PetroChina owns 50 per cent of Arrow and the rest is owned by Shell. PetroChina bought Arrow for $2.5 billion in 2010.

While Arrow is a major player in the Queensland gas market and is currently developing the $10 billion Surat Gas Project, it reported losses of $1.05 billion in the 2021 financial year and as much as $3.3 billion between 2018 and 2021. It has had write downs of about $10 billion since 2010.

It was also fined $1 million by the State Government last year over breaches at its Dalby operations and recently had to walk away from plans to drill on the Scenic Rim.

Reuters reported the company’s sale plans were impacted by the strained the relations between China and Australia which has led to wide-ranging trade bans on Australian commodities.

Fellow Chinese petroleum major CNOOC is also reported to be leaving Britain, Canada and the US over concerns it may get caught up in sanctions in those countries.

Reuters quoted sources saying the Arrow Energy and Browse assets were considered negatives for PetroChina and Arrow is one of its biggest loss makers.

Arrow said it would not comment on the speculation.

 

 

 

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