China's CNPC Boosts Overseas Oil, Gas Production to Record High
(Bloomberg) -- China National Petroleum Corp., the country’s biggest oil and gas producer, boosted overseas output in countries from Central Asia to Africa to a record amid tumbling oil prices and currency fluctuations.
CNPC raised its equity oil and natural gas production in countries including Iraq by 10.5 percent to record 72.02 million metric tons last year, it said in its online newsletter on Thursday. That’s nearly 1.45 million barrels a day. Equity output refers to the company’s share of production split between project partners.
“In 2015, the overseas operation was challenged by low oil prices, geopolitical instability and worsening security in some countries, as well as big currency fluctuations,” CNPC said in the statement. “The company has been coping with the difficult time through cutting costs.”
Oil collapse below $30 a barrel has forced global producers from Royal Dutch Shell Plc to CNPC’s state-run rival China National Offshore Oil Corp. to cut spending. CNPC last year cut investments in its Kazakhstan operations by 50 percent and lowered spending in Latin America by more than 60 percent, it said.
CNPC added 98.86 million tons of overseas recoverable oil and gas reserves last year, 29 percent above its target, in countries including Kazakhstan, Sudan and offshore Brazil. Total overseas output at projects it operates climbed 8.5 percent to 138 million tons, a figure that includes oil and gas owned by project partners.
To contact Bloomberg News staff for this story: Jing Yang in Shanghai at firstname.lastname@example.org. To contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com Abhay Singh
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