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CNPC Gets Rich Returns From Tapping Overseas Resources
China National Petroleum Corporation (CNPC) gained high returns on tapping overseas petroleum during the Ninth Five-year Plan period.
The oil giant signed altogether seven contracts on the exploration and development of overseas petroleum, one contract on oil refining, and one on the construction of oil pipelines, involving a total investment of 15.6bn yuan by the end of 2000. Meanwhile, the company also formed three strategic development regions, Middle East-North Africa, Central Asia-Russia, and South America.
CNPC reportedly has a share of 460m tons of exploitable overseas oil reserves. In 2000, its annual output of overseas crude oil reached 13.5m tons, natural gas 1.08bn cubic meters and has a share of l 5.05m tons of crude oil. Its income from the sales of its share oil totaled US$1.3 billion in five years.
According to CNPC, most of its overseas projects under operation have proceeded from capital input into the period of investment recovery, which generally lasts five to six years. The average crude oil discovery cost is US$2.14 per barrel and the average operation charge on each barrel of crude oil is US$2.1, making it highly competitive in the international market.
CNPC's overseas projects have also given a strong impetus to the development of projects undertaken abroad, technological services and the export of materials and equipment. By the end of 2000, the above-mentioned three items had earned the group US$2.66 billion in five years.
It is estimated that by the year 2005, the annual crude oil output of CNPC's overseas oil projects will exceed 30 million tons and their share of crude oil 9 million tons respectively.
By PD Online staff member Huang Ying
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