China’s top two oil giants join hands in oil and gas exploration
Jul 10, 2019 (China Knowledge) - China National Petroleum Corp (CNPC) and China Petroleum and Chemical Corp (Sinopec), the two biggest state-owned oil and gas companies, are to collaborate on expanding their reserves and production capacity in China’s central and western regions.
CNPC is the biggest oil and gas company in China, and Sinopec is the world’s largest refiner by volume. On Monday, the two firms signed a joint research framework agreement on large-scale upstream exploration involving multiple oil and gas blocks.
The two companies signed another strategic cooperation agreement involving two of their oil fields last month. The new deal announced on Monday covers a total area of 308,500 sqm in China’s Xinjiang region and Sichuan province.
CNPC plans to inject RMB 5 bln each year in exploration from 2019 to 2025, 4 times higher than that in 2018. Meanwhile, Sinopec will increase its investment in exploration, development, and capacity building by 30%-50% in the next 6 to 7 years.
It is the first time that the two oil giants have research collaboration on such a large scale and multi-regional oil and gas, as the rivals used to keep their exploration data unknown to each other. This collaboration will set a stage for their future oil and gas joint investment.
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