20-03-09 PetroChina is planning to complete arrangements for five oil and gas cooperation areas worldwide within 8 to 10 years, and to increase its overseas oil and gas production to 200 mm tons.
In 2008, PetroChina's overseas oil and gas production totalled 67.5 mm tons (62.2 mm tons of crude oil and 6.7 bn sq meters of natural gas). Meanwhile, its domestic production of crude oil and natural gas totalled 108 mm tons and 61.7 bn cm (147 mm tons), respectively.

PetroChina considers the present a very important development period for its overseas business. China's dependence on overseas oil tops 50 %, and domestic oil and gas demand are certain to grow. PetroChina plans to use the economic downturn, when energy and assets prices have declined on the whole, to develop as a comprehensive international energy concern.
According to its latest expansion plan, in the next 10 years PetroChina looks to increase its overseas oil and gas production by at least 130 mm tons. PetroChina plans to use this period to basically complete the construction of five oil and gas cooperation areas, of different scales, in Mid-Asia, Africa, South America, Middle East, and Asia-Pacific.

PetroChina has formulated different plans for the five areas. First, it will develop the Mid-Asia region, mainly in Kazakhstan, Turkmenistan and Uzbekistan, into its most important overseas oil and gas cooperation area. Second, it is going to expand its business in Africa. Third, it will enlarge its business in South America, especially Venezuela, Peru and Ecuador, developing it into its largest overseas cooperation area for the production and supply of unconventional oil.
Fourth, it will reinforce its influence in the Middle East and make it an important alternative area for its future oil and gas business. Last, it will promote the development of its business in Asia-Pacific and make it an important natural gas and LNG producer and supplier.

Accelerating oil and gas pipeline construction in China itself is also part of the plan. In the west, PetroChina plans to finish its line into Mid-Asia as soon as possible, realizing 20 mm tons of annual oil and gas transmission from the China-Kazakhstan pipeline, and 30 bn to 40 bn cm of gas transmission from the Mid-Asia pipeline. PetroChina also plans to launch a China-Russia Pipeline in the north as soon as possible, designed to transmit 15 to 30 mm tons of oil and at least 30 bn cm of gas annually.
In the south, PetroChina is promoting the construction of a China-Burma pipeline to carry 20 mm tons of oil and 30 bn cm of gas every year. In the east, PetroChina is building offshore oil and LNG supplier channels with ships to increase annual oil supply by at least 40 mm tons and realize an annual LNG supply of at least 10 mm cm.

Of all the developments, the Mid-Asia pipeline is PetroChina's most important task this year. According to the plan, the company should finish 1,800 km of pipe and a compressor station this year to guarantee the timely transmission of natural gas from Turkmenistan. It also plans to complete the second-stage China-Kazakhstan pipeline by the end of September so that crude oil from the west of Kazakhstan will gradually replace or augment crude oil from Russia.
PetroChina senior overseas business officials emphasize that the company should seize the opportunity of low oil prices to accelerate construction of oil and gas pipes, promote China's oil financing and trade negotiations with Russia, Kazakhstan, and Venezuela, and establish a shipping company for heavy oil and LNG.

PetroChina also plans to become a global energy trader, with six regional oil and gas operation centres in Asia, the Americas, and Europe. In future, annual energy trading could reach over 400 mm tons, crude oil import capability alone reaching 100 mm tpy.
PetroChina's north-eastern Asia operations centre may be completed in the first half of this year. Domestic crude oil and oil product depots, especially in eastern coastal areas, are also to be constructed this year. Meanwhile, PetroChina's international trade is expected to reach at least 130 mm tons in 2009.