CNPC LIFTS OIL PRODUCTION
CNPC is trying a new tack on old oilfields in northeast China, as its largest oil company tries to stem declining production and throw off the shadow of a year-long corruption probe.
The pilot project comes as China's largest state-owned groups experiment with ways to attract additional capital without issuing more debt.
Sinopec, the nation's second-largest oil company, kicked off the reform with an announcement that it would sell a 30 per cent share in its retail arm, and other companies have followed suit.
Mao Zefeng, from CNPC's listed unit PetroChina, said yesterday that CNPC would grant more autonomy to local managers and allow them to keep more of the revenues from additional production in a pilot project at the Jilin and Liaohe fields.
The two fields accounted for under 12 per cent of PetroChina's domestic crude oil output in February, down from about 14 per cent five years ago.
CNPC has been the centre of an extensive corruption probe that is thinning the ranks of allies of Zhou Yongkang, China's former energy and security tsar.
The company has been lambasted in the Chinese press as a hive of subcontracts, most of them not publicly revealed, with companies belonging to former regional bosses, local government officials or powerful families in the ruling Communist party.
In some cases, the subcontractors produce additional oil from their patches and sell it on to PetroChina as part its effort to meet production targets.
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