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Tuesday, October 16th, 2007

PetroChina Surpasses GE as Worlds Second Most Valuable Company; Sets Sights on Exxon

By Mike Caggeso
Staff Writer

Record oil prices and strong sales and profits have vaulted PetroChina Co. Ltd. (PTR) past General Electric Co. (GE) as the world’s second-biggest company by market value.

PetroChina also said it had completed procedures for its $5 billion A-share initial public offering and expects to list its shares on China’s Shanghai stock exchange in November. The pending swarm of fresh investors should bump the $434 billion PetroChina even closer toward the world’s largest company, the $525-billion Exxon Mobil Corp. (XOM).

Adding to PetroChina’s hot streak, the company may make further discoveries in the northern Liaohe and Dagang areas, Bloomberg News reported that Chairman Jiang Jiemin stated at the Communist Party Congress in Beijing yesterday (Monday). The offshore oil discoveries would add to reserves from the Jidong Nanpu field, the nation’s largest oil discovery in almost half a century - and the site of newly discovered reserves.

Overall, the hope is that more domestic oil production will reduce China’s dependence on energy imports, which can only spell more growth for PetroChina. China’s net oil imports rose 4.1% year over year to 47% of total consumption last year, according to the Ministry of Commerce.

PetroChina’s third-quarter report showed gas and oil output rose 5.6%, slightly ahead of its 5.3% full-year target. 

"PetroChina’s share surge is mainly due to investors’ expectations of the company’s further growth, high oil prices and a good market outlook," Jiang told reporters in Beijing, according to Bloomberg.

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