China’s oil giant says it’s not seeking discounted Russian fuel

PETROCHINA isn’t seeking any discounted Russian oil and gas and is only purchasing fuel from the country through its existing contracts, company executives said Friday.

Deals with Russian counter-parties are operating normally, chief financial officer Chai Shouping said on the company’s first-quarter earnings call. Transactions have continued to be settled in US dollars or euros despite international sanctions against several Russian banks following the invasion of Ukraine, Chai said.

Since the invasion, several countries have spurned Russian oil imports, forcing the country to offer it at heavy discounts to find new buyers. India, for example, is seeking Russian cargoes at less than US$70 a barrel on a delivered basis to compensate for additional hurdles, such as securing financing for purchases, well below benchmark prices above US$100.

PetroChina, the traded unit of China National Petroleum, also said it plans to boost its exploration and production efforts as higher oil prices signal a new supply and demand reality, without offering specific details. PetroChina was the only one of China’s three state-owned oil giants that decreased its capital expenditure budget for this year. BLOOMBERG