Petro China exodus sparks talk of shift in strategy
Broad pullback feared in Americas
A flurry of departures NEW YO R K across the U.S. and Canadian units of Chinese state energy firm Petro-China Co Ltd have sparked speculation that the oil trader is reducing its presence in North America, even though the company says it is committed to the region.
More than 30 people in its Houston and Calgary offices have left Petro China since 2016, including heads of desks in crude, financial, natural gas and chemical trading, the company confirmed. Sources say Petro-China had approximately 150 to 200 people at its peak two to three years ago, and now has between 100 and 150.
Nearly a dozen sources in New York, Calgary, Houston and Singapore, including current and former employees, told Reuters the departures suggest a shift in mindset among firm management, and there are concerns about a broad pullback from its presence in North America. The sources, which includes several who do business with the firm, said North American offices may have expanded too quickly.
Mark Jensen, spokesman for Petro-China International America, said the company is committed to business throughout the Americas. He previously said the company and its subsidiaries have restructured the organization where necessary over the last several months, and that the departures do not represent a change in strategy in the region.
A Beijing-based company executive, who has direct knowledge of the firm’s global operations, said “poor performances or missing profit targets” was the main reason behind the staff departures. The official, who asked not to be named, said there will be some restructuring in some of the business divisions, particularly natural gas.
“The company believes natural gas shall have good potential to expand, both in terms of scale and profit targets,” he said.
In recent years, Petro-China built itself into one of the largest oil traders in North America.
Sources interviewed said management’s mindset over the last year has shifted toward tightening credit limits and shifting away from sources of activity common among oil traders operating in North America.