CNPC's production rose 2.8% in 2012 despite poor overseas performance.
CNPC domestic production is failing to keep up with demand Image: PetroChina |
The 67-
Overseas oil and gas production at China National Petroleum Corp, the nation’s largest energy producer, underperformed in 2012, even as overall production increased by 2.8%. Foreign output was 104 million metric tons last year, roughly the same amount as in 2011 and more than 15 million tons less than the yearly target.
A statement released by the company attributed the production gap to “geopolitical effects and political instability in resource countries”, such as Sudan and Syria. Zhou Jiping, general manager of the state-owned company, claimed “security and policy risks will be on the rise in 2013, making it very difficult for CNPC to maintain stable production at overseas projects.”
Overseas production accounted for 37% of CNPC’s total output in 2012, compared to around 50% of total production in 2011. CNPC, like fellow major Sinopec, is casting its net further and further a field to help mitigate refining losses at home, however lagging productivity overseas is a costly drain on resources.