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BEIJING, Oct. 31 (InfoChina) – Daqing oilfield, the oil production flagship of PetroChina (NYSE: PTR, HK: 0857), is expected to produce 43 million tons of crude in 2006, dwindling by 4.3 percent year on year, according to Wang Yupu, head of the oilfield company.
Daqing oilfield’s crude output has declined since 2003. Experts say that the aging oilfield’s production decline will be even faster in the coming years. Besides Daqing oilfield, Shengli Oilfield, the country’s another flagship oilfield owned by Sinopec (NYSE: SNP), also faces similar production decline problems. PetroChina and Sinopec, China’s leading oil and gas producers, strive to explore new oil and gas resources to offset the output reduction of these aging oilfields. For instance, PetroChina announced earlier October that Daqing oilfield has yielded more than 100 million tons of additional crude by this September through implementing a self-facilitated tertiary oil process technology, providing a solid foundation to support the oilfield’s further sustainable development. But generally the declining trend is undoable for these aging fields. PetroChina posted 4.6 million tons or 1 percent year on year growth of its crude production in the third quarter this year. If Daqing oilfield’s output drops to 43 million tons this year, it will be about 1.93 million tons less than the production in 2005. It is no good news for PetroChina’s crude output growth, merely at 1 percent annually, unless its news findings yield enough to offset the flagship’s crude curtail. |
China Stock News 
