CNPC to Export Over 30 Oil Rigs in 2008 to Russia, Africa

BEIJING, April 7, 2008 (Dow Jones Newswires)

China National Petroleum Corp. will export more than 30 oil rigs this year, mainly to Russia and Africa, a senior executive said Monday.

The focus this year will not be on Venezuela, said Li Xinhua, vice president, on the sidelines of an industry forum.

Petroleos de Venezuela, or PdVSA, had said Friday it intends to set up an oil rig manufacturing plant in Venezuela in the future under a partnership with CNPC.

Given the future localization of rig manufacturing in Venezuela, CNPC is now looking at Russia and Africa as its main export destinations as demand for oil drilling is strong in these regions.

CNPC has exported oil rigs to Venezuela, the Middle East and Central Asia in the past and enjoys the advantage of relatively low manufacturing costs.

BEIJING, April 7, 2008 (Dow Jones Newswires)