Jan. 16, 2007 (China Knowledge) – PetroChina Co. the Mainland's biggest oil and gas producer, posted on Monday record output of crude oil and natural gas for 2006 due to sharp growth in gas production and the country's strong demand for petrochemical products.

In 2006, PetroChina's output of oil and gas totaled 1.06 billion barrels of oil equivalent (BOE), up 5.2% from 1.01 billion BOE in 2005. Crude oil output was up 0.8% to hit a record 829 million barrels in 2006 amid efforts to control the depletion rate of its aging domestic oil fields, while natural gas production jumped 23.5% to 1.38 billion cubic feet. The increase in natural gas production was due to expanding gas pipeline network throughout the country and the government's determination to boost cleaner fuel use as it tries to cut its reliance on oil.

For the fourth quarter last year, PetroChina's total output was 268.4 million BOE, with 203.6 million barrels of crude oil and 375.3 billion cubic feet of natural gas. It did not give comparison figures.

PetroChina completed the US$2.74 billion purchase of a 67% stake in PetroKazakhstan last month from its State-run parent, China National Petroleum Corp. The company expects the acquisition to help boost PetroChina's production 5% a year for the next five years.

The State-run company said in a statement that it will grow even bigger this year, citing a strong Chinese economy and its aggressive expansion plans.

"Looking forward into 2007, the world economy is expected to continue to grow at a relatively fast pace. It is likely that the Chinese economy will also see steady growth with demand for oil and gas as well as petroleum," the company said in a statement.