New PetroChina Oil Reserves Expected to Generate Increased Profits

The Chinese stock markets have been on fire this year, producing a new class of affluent Chinese investors. This is unusual for a country in which all businesses were formerly owned entirely by the government, and all jobs provided by the government.

Among the companies about to go public in China is PetroChina, whose shares are already traded on the New York Stock Exchange and the Hong Kong Exchange, and now they will also be traded on the more mainstream Shanghai Stock Exchange.

PetroChina expects to undertake six new projects with the proceeds from the offering, all of which will help it boost output of both oil and gas.

The company believes that a recent oil discovery at its Jidong Nanpu oil field, off China’s northeast coast in the Bohai Bay, could be found to have considerable reserves, the state-run newspaper China Daily reported:

“We estimate that eventually, we could have proven reserves of as much as 1 to 1.6 billion tons (oil equivalent) from the offshore blocks of our Jidong Nanpu oilfield in the Bohai Bay area,” Jia Chengzao, vice-president of PetroChina and academician at the Chinese Academy of Sciences, told the China Oil and Gas forum on Saturday.

“Including reserves from onshore, the ultimate proven reserves of Nanpu oilfield are expected to hit around 2 billion tons.”
The Jidong Nanpu oilfield has combined proven, probable and possible reserves of 1.18 billion tons of oil equivalent, the Ministry of Land and Resources certified in August. The present proven reserves are certified at 445 million tons oil equivalent.

PetroChina has been preparing its facilities for global scrutiny for quite some time now; it has deployed our enterprise software throughout the country. The company is working to become a model of corporate social responsibility and environmentalism.

The company has demonstrated its leadership by deploying a corporate wide software platform that consolidates all of their environmental, health and safety-related data in a single database across all of the operating facilities in China. The system provides senior managers with full visibility of their progress toward meeting performance goals through company wide metrics and key performance indicators. This is a good move on their part, as stakeholders all over the world have pinpointed sustainability criteria as an important aspect of any investment they make.

1 comment October 22nd, 2007