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China's leading oil refiner Sinopec predicts its Shengli Oilfield will produce 27.58 million tons of crude oil and 850 million cubic meters of natural gas in 2007.

The oil output represents an increase of 165,000 tons over 2006. Sinopec says it will increase its production capacity at Shengli by 3.976 million tons of crude oil and 105 million cubic meters of natural gas in 2007. The company also plans to increase its proven reserves in the oilfield.

Shengli Oilfield is China's second largest oilfield and Sinopec's largest. Its oil output hit 27.415 million tons last year, an eight year high.

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