Slash in capex for China’s largest oilfield

China

BEIJING, December 28, 2016 – PetroChina will cut capital spending on its Daqing oilfield by 20% compared to the previous year, the NOC announced in a statement on Wednesday.

Although investment in the field will be lowered, the company still intends to raise production by 10% in each operating well and is set to maintain output at 293 million barrels of oil and gas per year from 2016 through 2019 on the mature field, a slight reduction from the 301 million barrels it produced in 2015.

The move was preceded by the company posting a loss of USD 770 million (CNY 5 billion) on the field in the first two months of 2016.

The field, which came on line in 1960, has so far produced 16.9 billion barrels of crude oil.