Monday, July 28, 2008

CNPC

CNPC to focus on Sudan
Date: 25/07/2008 
   
China National Petroleum Corporation (CNPC) plans to set up two independent
units to spearhead investment in oil and gas exploration and development in
Sudan and South America.
Company officials said Sudan and South America are emerging areas that are
poised to contribute the bulk of CNPC's overseas production in the future.
The company plans to separate its operations in Sudan and Venezuela from
those in the rest of the world because they are politically sensitive areas
where foreign investment has drawn international criticism.
Currently, the E&P investment in the two areas comes under the jurisdiction
of CNPC's overseas outfit China National Oil & Gas Exploration & Development
Corporation.
CNPC hopes the new structure will help ease the international row over its
E&P involvement in Sudan.
The company hopes to produce 600,000 barrels per day of crude from Sudan by
2010, despite the fact that it has reduced activities in Sudan's Darfur
region due to unrest.
It is now operating at Sudan's blocks 1, 2, 6, 3/7, 12/4, 13 and 15. The
latest addition is the 20-year production sharing contract for Block 13 that
covers 38,200 square kilometres, stretching from Sudan's north-east coast to
the Red Sea.
CNPC has a 40% interest in the project, with the rest split between
Indonesian state-owned oil company Pertamina, Sudanese state oil company
Sudapet, Sudan's Dindir Petroleum International and Nigeria's Express
Petroleum & Gas and Africa Energy.
The South American unit will look after E&P in Peru and Venezuela. The
latter is increasingly becoming important in CNPC's overseas profile.
Two months ago, CNPC signed a deal with Venezuelan state oil company PDVSA
to form a joint venture to develop the Junin 4 Block in Venezuela's Orinoco
heavy oil region.
In the deal, CNPC will have a 40% stake. PDVSA and CNPC plan to produce
about 20 million tons of oil per annum from the block.
The companies have also signed a deal to jointly build a refinery in China
to process heavy crude from the Orinoco field as part of Venezuelan
President Hugo Chavez's plans to boost exports.
PDVSA has also signed a memorandum of understanding with a Chinese shipyard
to build large crude carriers to move the fuel to China.
Venezuela said earlier that it will boost oil supplies to China to 1 million
bpd by 2012, up from the 500,000 bpd expected in 2010. The current volume is
250,000 bpd.
Source :Upstream 25 Jul 2008 
   







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