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BIZCHINA / Top Biz News
PetroChina proven oil reserves revised up
By Wang Yu (China Daily)
Updated: 2007-08-15 09:40
PetroChina's largest oil discovery in a decade boasts more reserves than
estimated, it was confirmed yesterday - a shot in the arm for both the
company and the country's energy security.
Jidong Nanpu Oilfield in the Bohai Bay has combined proven, probable and
possible reserves of as much as 1.18 billion tons of oil equivalent, the
Ministry of Land and Resources of China certified yesterday.
The proven reserves are certified at 445 million tons oil equivalent.
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PetroChina originally estimated Nanpu's three-level reserves to be around
1 billion tons of oil equivalent, with proven reserves in place reaching
405 million tons.
"The confirmation proves the effectiveness of advanced technology in
exploration and production," Han Xiaoping, an analyst with energy portal
China5e.com, told China Daily. "It is a big incentive for more
exploration."
Han contended that like in the case of Northeast China's Daqing Oilfield,
it is possible for even more reserves to be discovered at Nanpu Oilfield
and around Bohai Bay at large, with increased exploration.
The reserves at Daqing, the country's top oilfield, were initially
thought to be 2.2 billion tons, but eventually turned out be to 5 billion
tons following intense exploration efforts.
A source with China National Petroleum Corporation (CNPC) Consulting
Center agreed with Han.
"It is likely that more reserves are discovered at Nanpu Oilfield. In
fact, the offshore areas in Bohai Bay are bound to have a larger
potential, given the geological features," the source told China Daily.
CNPC is the parent company of Hong Kong-listed PetroChina, the country's
top oil and gas producer.
Yin Xiaodong, an oil analyst at CITIC Securities Co, commented that
although the increase in reserves may not necessarily add weight to
PetroChina's earnings per share in the short term, it is positive for
PetroChina in the long run.
PetroChina's proven developed and undeveloped reserves at the end of 2006
reached more than 20.5 billion barrels (2.8 billion tons) of oil
equivalent, according to the firm's annual report. The newly certified
reserves at Nanpu Oilfield will increase the firm's reserves by more than
a third.
The reserve certification was done by independent oil experts from
Sinopec, China National Offshore Oil Corporation and the Ministry of Land
and Resources. It is international practice for reserve certification to
be done by third party members to ensure authenticity, Han explained.
More reserves discovered at home will reduce the country's dependence on
imports, Han pointed out.
In tandem with fast economic growth, the demand for oil is picking up
rapidly.
The country's oil dependency, or the proportion of imports in total oil
consumption, went up 4.1 percentage points year on year to 47 percent in
2006, according to the Ministry of Commerce.
(For more biz stories, please visit Industry Updates)
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