China’s Largest Oilfield Exceeds Production Expectations in First Quarter

China’s Largest Oilfield Exceeds Production Expectations in First Quarter

Dou Shicong

Date: Thu, 05/03/2018 - 15:57 / source:Yicai
China’s Largest Oilfield Exceeds Production Expectations in First Quarter
China’s Largest Oilfield Exceeds Production Expectations in First Quarter

(Yicai Global) May 3 -- Daqing Oilfield, China's largest source of crude reserves, produced 7.9 million tons in the first three months this year, 2,800 tons more than expected.

Operator Daqing Oil Field Co., a unit of state-owned China National Petroleum Corp. posted a first-quarter total output of 9.4 million tons of crude oil, of which domestic production accounted for 7.9 million tons, all from Daqing field.

Daqing Oilfield in northeastern China's Heilongjiang province covers an oil-bearing area of more than 6,000 square kilometers and the developer has carried out resource explorations for more. The explored oil reserves reached 60 million tons and the natural gas reserves were 8 billion cubic meters, the China News Service reported.

The company also achieved double-digit growth in both the production and the domestic sales of natural gas. The firm produced 1.2 billion cubic meters of natural gas, an annual increase of 13.3 percent. It sold 759 million cubic meters of natural gas, up by 13.6 percent yearly, which was due to peaking demand during the country's winter months.

The revenue from overseas sales surged by 34.1 percent annually and the contract work for overseas oil service businesses increased by 27.7 percent. The refiner anticipated that the overseas crude oil production capacity will be close to 10 million tons by 2020.

China National Petroleum Corp. (CNPC) is the largest oil and gas company in China by the size of its oil and gas reserves and production volumes. It has been exploring oil for over 50 years, with overseas contracts in Abu Dhabi, Iran, and Brazil.

Editors: Emmi Laine, William Clegg

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Keywords: Daqing Oilfield, CNPC, Natural gas, Petroleum, Oil Refining