Unrest abroad causes firm to miss overseas output targets

The overseas oil and natural gas output of the nation's largest energy producer, China National Petroleum Corp, missed its 2012 targets because of unrest in various countries around the world.

Its overseas production reached 104 million metric tons in 2012, or about 2 million barrels a day, the second successive time the company has achieved more than 100 million tons of output outside of China, according to information released on its website.

China National Petroleum Corp's booth at a trade show in Tianjin in September. The company's overseas production reached 104 million metric tons in 2012, or about 2 million barrels a day, according to information released on its website. [Photo /?China Daily]

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However, the output was still more than 15 million tons less than its annual target, which it blamed on political instability in some of the countries in which it has oil and gas resources.

Li Li, a senior analyst at ICIS C1 Energy, a Shanghai-based energy information consultancy, pointed to Sudan's political issues, in particular, which he said had a big effect on CNPC's oil production activities in the region.

The figures show that the company's overseas share of production last year was 52.4 million tons, up 1.4 percent from 2011.

Its global oil and gas trade volume reached more than 300 million tons for the first time, up 18.5 percent annually, and was valued at $230 billion, up 19.7 percent year-on-year.

"The company's oil and gas operational center is a stronger competitor in the Asian market. Oil and gas trade volumes in South America and Canada increased in 2012," it said.

One notable area of success was its oil output in Rumaila, Iraq's biggest oilfield, which reached more than 25 million tons in 2012 - 5.2 million tons more than its target and the highest output of its overseas projects.

 

China's overall domestic crude oil output will reach 207 million tons in 2012, a record high, according to Zhu Fang, deputy director of the information and marketing department of the China Petroleum and Chemical Industry Federation.

"Domestic crude oil production has not yet reached its peak, but the growth rate will not increase too much in the short term," he said.

"To achieve large-scale growth, China's oil and gas output will depend on technological upgrading and scientific research."

Although China's crude output has been increasing, domestic consumption has been rising faster.

In 2011, China's crude output was 203 million tons, a 1 percent rise year-on-year, while consumption was 453 million tons, a 3.3 percent increase, according to the China Petroleum Enterprise Association.

Zhu said the country's oil consumption will be around 470 million tons in 2012.

The association estimated that China's crude oil consumption will be more than 500 million tons in 2013 and demand will continue to grow over the next five years.

As the second-largest crude oil consumer, China still has a long way to go in commercializing unconventional oil and gas sources, meaning the country will have to depend on imported oil as its main energy source for years to come, said the association.

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