| Oil and gas exploration underpins our development and is the first task to fulfill our social responsibility. We has been highly responsible when achieving breakthroughs through exploration, boosting oil and gas production and promoting the development of new energies, with an aim at meeting the increasing demand in domestic markets.
Oil and Gas Exploration
A series of major discoveries were made and many reserves confirmed in Bohai Bay, Ordos Basin, Sichuan Basin and Junggar Basin with the use of improved technologies, advanced oil geology theories as well as other advanced technologies including extensive 3D seismic data acquisition and 3D pre-stack time migration processing techniques.
Oil and Gas Production
In 2007, PetroChina achieved continuous and steady growth in oil production and rapid growth in natural gas production. By the end of 2007,We has developed 6 large-scale oil and gas fields with equivalent production exceeding ten million tons. Particularly, the Daqing Oilfield Company remained the leader amongst domestic oil companies, with an annual crude oil production of 41.62 million tons. The Changqing Oilfield Company became the second largest oil/gas field for PetroChina with gas production exceeding 10.0 billion m3 and oil/gas equivalent production exceeding 20.0 million tons for the first time. The Tarim Oilfield Company became the largest natural gas production base in China, with the annual production of natural gas exceeding 15.0 billion m3. In 2007, the Jidong Oilfield achieved an oil production output of 2.13 million tons, 420,000 tons more than that in 2006.
New Energy Development
Developing new energy is our important strategy. Moreover, developing and utilizing unconventional hydrocarbon resources to replace and supplement traditional options and increasing the effective supply of oil and gas have been included in our development plan. As a result, the Company established an industry-leading bioenergy research team and a new energy management department and put together a development plan. By the end of 2007, much important interim progress had been achieved.
—— Coal-bed gas development began to take shape. We has set up a coal-bed gas laboratory ——the most advanced in China —— which holds three national patent technologies.
—— Ethanol gasoline sales covered 50% or more in market shares throughout China.
—— An integrated project - “Biodiesel from Wood” was initialized.
——The evaluation, development and utilization of geothermal, wind and solar energy were promoted.
International Oil and Gas Cooperation
We have been developing overseas oil and gas cooperation in a forward but prudent manner in order to increase the supply of oil and gas from both domestic and international sources. In 2007, overseas oil and gas investments had been extended to 29 projects with respect to oil and gas exploration, development, pipeline construction, refining and chemicals, as well as oil products marketing in 12 countries or regions, including Africa, Central Asia, South America, the Middle East and Asia Pacific.
We have also been expanding the scale and scope of external cooperation in China. In May 2007, the Changbei Gas Field, co-developed by PetroChina and Shell, was commercially put into operation. In the same year, PetroChina signed framework agreements on cooperation with Statoil and Royal Dutch Shell. More importantly, PetroChina signed with Chevron the Natural Gas Development and Production Agreement for the Northeast Sichuan Block in the Sichuan Basin, the largest onshore natural gas cooperation project in China, marking a new era for domestic cooperation on oil and gas development.
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