China’s CNPC extends Oman oil production contract for 15 years

Production at the oilfield block reached 1.33 million tonnes in the first half of this year

Saudi, Russia, Qatar and Venezuela agree to freeze oil output at Jan levels

China National Petroleum Co., or CNPC, has extended a contract for developing an aged oilfield in Oman for another 15 years, the Chinese state oil and gas group said on Thursday.

In 2002, CNPC won a 50 per cent stake in Oman Block 5, an oilfield that covers an area of 992 sq kms but was producing only 700 tonnes of crude oil a day after more than a decade of over-rapid drilling, CNPC said on its website.

Using technology such as horizontal water injection widely applied in China, CNPC raised output at Block 5 to 2.62 million tonnes in 2018, or about 52,400 barrels per day (bpd), it said.

Production at the block reached 1.33 million tonnes in the first half of this year.

Oman, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced an average of 978,400 bpd of oil 2018.