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Chinese oil companies to further expand abroad

March 13/2012

(news.flanders-china) -- The expansion blueprints of Chinese oil companies overseas are currently facing "unprecedented challenges', which means they should prepare for the unexpected, according to Chen Geng, a Deputy to the National Peoples Congress (NPC) and the former General Manager of CNPC.

"It is now a good time to launch mergers and acquisitions overseas," he said. In 2011, the total mergers and acquisition value of Chinas three biggest oil companies CNPC, Sinopec and CNOOC reached about USD20 billion. Wu Mouyuan, Researcher with the CNPC Economics and Technology Research Institute, predicted that Chinas total overseas equity-based oil and gas production volume may increase by 5% to 10% this year.

Last year, the offshore equity-based oil output of Chinese companies was 90 million tons, 20 million tons more than in 2010, said Wu. "Globally, 11% of oil production came from Chinese producers in 2011." Currently, some oil construction and production projects have ceased in Sudan, CNPCs biggest overseas oil exploration base, and there is no sign of them restarting because of political issues.

China National Offshore Oil Corp (CNOOC) intends to maintain its output of overseas gas and oil at 10 million to 13 million metric tons in 2012. CNOOC recently said its goal for the year is to produce from 330 million to 340 million barrels of oil equivalent (BOE). The Penglai 19-3 oilfield in Bohai Bay, which was forced to close in September following an oil spill, is ready to begin operating again, if approval from the government is granted, the company said. Authorities blamed the leaks mainly on the negligence of ConocoPhillips China, which operated the oilfield.

Author:Anna Larionova
Tags:naphta, oil.
Category:General News
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