31 May 2007 - 18:44
  • News Code: 106031
Sinopec Shares Jump on Oil Find

HONG KONG -- Shares of China Petroleum & Chemical Corp. jumped 9.7 percent Thursday, a day after its parent company said Sinopec had found more crude oil in northwestern China.

Sinopec, Asia"s largest refiner by capacity, has found oil reserves of 1.03 billion to 1.5 billion barrels in the Xinjiang Autonomous Region, according to its parent company, China Petroleum Corp.

 

The news helped lift Sinopec shares 9.7 percent to $8.72 Hong Kong ($1.11) on the Stock Exchange of Hong Kong.

 

The find could raise Sinopec"s total oil reserves by 15 percent, and its net asset value by about 5 percent, according to Gordon Kwan, an oil analyst at brokerage CLSA.

 

The Tahe field accounted for about 13 percent of Sinopec"s total crude oil production in mid-2006. Some analysts have said the field"s production could someday rival output from Daqing, China"s largest oil field.

 

In February, Sinopec said it expects to produce 14 percent more crude oil this year in Xinjiang.

 

Analysts say a string of oil and gas discoveries by Chinese oil companies suggest China is trying to cut its reliance on energy imports by seeking new reserves.

 

PIN/AP

News Code 106031

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