PetroChina boosts exploration budget
Updated: 2007-10-18 10:11
Exploration will be ramped up at Daqing Oilfield to prove more reserves in the next decade, according to a source from the country's top oil company.
"As China's oil demand picks up, Daqing Oilfield must boost exploration to find more oil and gas reserves Over the next decade, we're targeting 100 million metric tons of proven oil reserves per annum from Daqing Oilfield to meet the country's rising energy demand," Wang Yupu, general manager of Daqing Oilfield Co Ltd, said yesterday on the China National Petroleum Corporation (CNPC) website.
PetroChina is boosting exploration spending as output from older fields, such as Daqing and Liaohe, falls and as China's oil demand surges. The company will outspend Exxon Mobil Corp, Royal Dutch Shell Plc and BP Plc this year to boost oil supplies, according to Bloomberg.
The company will use its increased exploration budget to find new reserves at old oilfields and to explore new fields.
The Beijing-based oil producer plans to maintain annual output of more than 12 million tons by 2010 at its Liaohe field, said Sun Chongren, Party secretary of Liaohe Oilfield Petroleum Administration Bureau.
"As output drops at existing old oilfields, there are two measures that can be taken to keep production stable. One is to enhance innovation and technology know-how to find hidden reserves at old fields. The other is to discover more emerging fields," said Han Xuegong, a retired analyst with CNPC.
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