Top Biz News

CNPC buys into Russian oil giant

By Xiao Wan (China Daily)
Updated: 2006-07-20 09:05

CNPC's subscription proposal gives full consideration for supporting Rosneft's successful listing and aims to boost pragmatic co-operation between the two companies, it said.

The co-operation between Rosneft and CNPC covers many areas, including possible joint bidding for petroleum exploration and development, as well as equity acquisition and the establishment of a joint venture for upstream activities in Russia and downstream activities in China, the statement said.

Analysts said the move signified that China, the world's second-biggest energy consumer, is marching at a fast pace to enter the Russian energy market, and it will enable China to have better access to oil worldwide.

As China's biggest oil producer, CNPC pumped 6.8 per cent more oil and gas in the first half of this year as energy demand soared in the world's fastest-growing major economy.
Crude and gas output rose to the equivalent of 533.2 million barrels of oil, the Beijing-based company said in a statement.

The production figures also position Hong Kong-listed PetroChina, which is due to post interim earnings in August, to make the biggest earnings of any Asian company in the first six months, analysts said.

PetroChina's oil production rose 1.8 per cent from a year earlier to 419 million barrels, while gas output jumped 31 per cent to 684.7 billion cubic feet (19.4 billion cubic metres).