China's largest oil and gas producer will raise spending 25pc to 250b yuan as production from mature oil fields dwindles
China National Petroleum Corp (CNPC), the nation's largest oil and gas producer, will raise investment in production and distribution capacity by 25 per cent to 250 billion yuan this year, as it strives to offset dwindling output from mature oil fields and lift gas production.
CNPC, the parent company of Hong Kong and New York-listed PetroChina, aims to raise its natural gas output by 20 per cent this year, according to a report posted on the company's website quoting comments by president Jiang Jiemin to mainland media on Friday.
Mr Jiang said the increase in investment from last year's 200 billion yuan was necessary to keep up with the mainland's energy demand and offset the 6 per cent to 8 per cent annual output decline of its mature fields.
He also attempted to deflect mainland media criticism that PetroChina had been slow to issue A shares and allow mainlanders to share in its huge profits.
'A share issue has been our wish and hope,' he was quoted as saying. 'As Asia's most profitable company, we ought to return to the A-share market to let mainland citizens share the fruit of our reform.
'We have always been studying the issue of A-share listing, but there is no timetable.'
