Shaanxi province, the biggest oil producer in the country, reported that revenue in the first half of the year increased by 12.1 percent, despite the plunge in crude prices.
Xia Xiaozhong, spokesperson of the province's finance department, said on Tuesday that infrastructure projects and equipment manufacturing helped revenue reach 103.47 billion yuan ($16.72 billion) for the first six months.
Xia predicted that China's economic growth will continue to slow in the second half and that the energy sector, including oil and coal industries, will suffer from weak demand.
"The local government has carried out series of policies including tax reductions to help energy companies survive the tough market conditions," he said. "In addition, we have helped small and medium-sized enterprises by cutting taxes (of around 9 billion yuan) to support their development."