CNPC Plans to Increase Daqing Oil Field's Production Quota to 40 Million Tons

---

Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing) has announced plans to raise the production quota of the Daqing oil field to 40 million tons per year in the next decade, as well as five goals for development. The oil field, located in northeastern China, has produced more than 1.9 billion tons of oil after it was found in 1959, accounting for 40% of China's oil output.

From 1976 to 2002, the oil field produced more than 50 million tons of oil per year, but that figure is decreasing, as Daqing now faces a high "water cut" level, or the amount of water that comes out with the oil. This is due to the process of injecting water into the aquifer to replace the pumped oil in order to keep the reservoir's pressure stable.

In the meeting, five major goals for the next 10 years were proposed:

1) Exploration of Song-Liao Basin to have proven oil reserves around Daqing up to 500 million tons; 1 billion tons in the Hai-Ta Basin; and new proven recoverable reserves of 200 million to 300 million tons by 2017.

2) Utilizing old oil fields to keep annual oil production above 27.7 million tons and add recoverable reserves by 140 million tons.

3) Speed up exploration in peripheral areas to increase annual production to 7.3 million tons and add recoverable reserves by 110 million tons.

4) Accelerate exploration of Hai-Ta Basin to reach 5 million tons in annual production.

5) Improve upon techniques and expand market share.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.