Oil company activity in int'l market high but meeting obstacles

Beijing (CNS) -- China's 2011 overseas oil gas equities report a yield equivalent to 85 million tons of oil, a 10 percent hike year on year, yet companies did face some challenges with their international market campaign goals, citing a 30 percent drop in mergers and acquisitions last year, according to a report released on Thursday.

The report was researched and compiled by the Economics and Technology Research Institute (ETRI) under the China National Petroleum Corporation (CNPC).

China's three major oil giants, CNPC, Sinopec, and China National Offshore Oil Corporation handle 50 million, 23 million and 10 million tons respectively of the national total, reveals ETRI.

Last year's oil mergers amounted to US$ 18 billion in value, and mostly took place in North America and the Asian Pacific region, says the report. It concludes the shrinking business was mainly the result of political instability, as well as policy and safety risks.

Findings are that China imported 250 million tons of crude last year, mainly from Middle Eastern and African countries, about 55.1 percent of the nation's total consumption. In terms of natural gas, the consumption for the year was 12.9 billion cubic meters, 20.6 percent more than last year, and about 31 billion cubic meters were imported, up by 82.3 year on year.

The signs are the domestic oil market will keep expanding to 493 million tons in 2012, according to the authors, and natural gas consumption will go the same way, expected to reach about 150 billion cubic meters.