It may be time for Warren Buffett to bail on PetroChina Co. Shares of the company, Asia's largest by market value, have risen 39 percent this year, and now are among the most expensive of the world's biggest oil producers relative to earnings. Buffett's Berkshire Hathaway owned 1.3 percent of Beijing-based PetroChina, valued at $2.7 billion, at the end of 2005.
The stock may trail shares of Cnooc Ltd. and China Petroleum & Chemical Corp. as refining losses mount and drilling costs climb. Refinery losses, caused by government caps on fuel prices, more than doubled in the first half. PetroChina is outspending competitors to buy and develop overseas fields. That makes Cnooc's focus on exploration and production attractive, said Liu Yang of Atlantis Asset Management Ltd
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The stock may trail shares of Cnooc Ltd. and China Petroleum & Chemical Corp. as refining losses mount and drilling costs climb. Refinery losses, caused by government caps on fuel prices, more than doubled in the first half. PetroChina is outspending competitors to buy and develop overseas fields. That makes Cnooc's focus on exploration and production attractive, said Liu Yang of Atlantis Asset Management Ltd
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