PetroChina Finds New Oil Reserves in Daqing Field

Dow Jones Newswires

BEIJING Aug 21, 2006 (Dow Jones Newswires)

In the first half of the year, PetroChina Co. (PTR) found 250 million metric tons of oil reserves in its Daqing field in northeastern China, equivalent to 1.83 billion barrels, the official Xinhua News Agency reported Monday, citing a local television report.

This is more than double what was found in the whole of last year, when around 100 million tons of reserves were discovered.

The additional reserves may help to slow the output decrease in the aging field - China's largest oil field in terms of production volume.

Daqing's crude oil output fell 2% on year in January-to-June to 22.26 million tons, equivalent to 901,469 b/d.

The newest reserves are located in four blocks, one of which is in Taidong Qijiabei area in Heilongjiang province. Proven reserves reach 73 million tons, or 535 million barrels.

The second block is in Talaha Changjiaweizi area of Heilongjiang, with proven reserves of 60 million tons, or 440 million barrels.

The third is in Gulong Maoxing area, also in Heilongjiang, with proven reserves of 96 million tons, or 704 million barrels.

The last is in Woerxun area, located in Hailaer basin in Inner Mongolia Autonomous Region, with proven reserves of at least 30 million tons, or 220 million barrels.

Xinhua didn't state Daqing's total oil reserves.

PetroChina is the listed arm of China National Petroleum Corp. (CNPC.YY), or CNPC, and is the largest integrated oil producer in China by capacity.

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