CNPC Released Plans to Increase Natural Gas Production
The China National Petroleum Corp. the biggest oil and gas producer in the country is planning to increase natural gas production for 2016 and at the same time maintain crude outputs near the 2015 levels. Natural gas output will be higher and oil production will remain stable. According to Deputy General Manager Wang Dongjin said that the Beijing based company has limited amount of money for investments this year ans will only spend on oil and gas exploration and remaining projects that need to have improved efficiency or for promoting sales.
Several producers are struggling after the oil plunge to a 12 years low on the global market and the price collapse delayed $380 billion worth of investments on 68 major upstream projects. And according to Wood Mackenzie Ltd. consultant these have forced suppliers from BHO Bilition Ltd to BP Plc in writing down the value of assets and laid off workers. CNOOC, China’s largest offshore oil explorer also announced a cut in oil output for this year for the first time since 1999.
CNPC is producing 260 million tons of oil and gas that is equivalent in 2015, while processing 196 million tons of oil products. The company is also aiming to reduce costs down by 10 percent for oil and gas production, sales, refining and transmission. CNPC’s overseas oil and gas output has increased 10.5 percent or 72 million tons last year and one third of the output coming from Iraq.