China is expected to cut investment in domestic oil and gas exploration by 13.8 percent because of the price slump, Bloomberg reports
China National, parent of Hong Kong-listed PetroChina Co., will cut its oil and gas output this year from 2008 levels because of weak demand, Vice President Yu told reporter at a meeting of the National People’s Congress on March 7.
The domestic economy, which expanded 6.8 percent in the fourth quarter, may grow 6.7 percent in 2009, the smallest gain in almost two decades, according to the International Monetary Fund.
China National Petroleum will also lower the cost of oil and gas extraction by at least 5 percent from a year earlier and reduce spending on projects by more than 10 percent, the Beijing-based oil producer said yesterday.
While domestic oil exploration slowed, the Chinese government is encouraging its state oil companies to buy resources overseas.
Source: Bloomberg
Author:
Ksenia Kochneva
