China's largest oil and gas producer PetroChina (part of the CNPC group) has reduced its domestic crude oil production target for 2016 by 3%, from 106 Mt to 103 Mt, as the operation of some of its high-costs fields has become economically non viable in a context of low oil prices. As well, the company has reduced by 3% its total oil production target (including from overseas projects). The company will also cut the share of oil in its total hydrocarbon production, raising that of gas from the current 37% to 50% by 2020.
PetroChina anticipates a moderate increase in oil prices by 2020, from US$45-50/bbl in the second half of 2016 to US$50-60/bbl in 2017 and 2018 and up to US$60-80/bbl by 2020. The company is facing declining profits and posted an underlying loss, excluding the Cyu 24.5bn (US$3.7bn) gain from the sale of a 50% stake in its gas pipeline company.