December, 2013 (Chinavestor) Download the report in pdf format . Based on gas pricing reforms and higher oil prices, we expect Petrochina’s business prospects to improve over the forthcoming quarters. Given Petrochina’s share of the natural gas market, they are likely to overturn downstream losses incurred in 2012 and improve their share price significantly in 2013. The revisions in gas prices are predicted to be considerably higher for industrial users than residential users. Petrochina has traded at PER of 12.5x in 2012, reflecting a 56% premium over CNOOC (NYSE:CEO) , who utilizes more aggressive E&P tactics and realised higher EPS values. 2013 estimates place PER at 13.3x, an increased premium, however, justified given Petrochina Co. Ltd. (NYSE:PTR) is able to capitalize further from price reforms. Petrochina Co. Ltd. (NYSE:PTR) and CNOOC are both susceptible to macro risks, which we estimate to deliver upsides in oil prices in 2013.