Sinopec discovers new oil reserves of between 140 mln and 200 mln tons in Xinjia

China’s second largest oil and gas producer, has made a new oil discovery in northwestern China’s Xinjiang Autonomous Region with geographical reserves of between 140 million and 200 million tons of oil equivalent, the company’s official news portal China Petrochemical News reported today.

The new discovery, located in block 12 of the Tahe oilfield, signals Sinopec’s latest step in the company’s effort to secure additional upstream resources. It also marks China’s latest reward for its desperate search for domestic energy supplies, which are needed to fuel its runaway economy in the face of the country’s ever-growing reliance on foreign energy.

Gordon Kwan, head of oil and gas research at brokerage CLSA Ltd., said in a research note that Tahe may increase Sinopec’s total reserves by 15 percent and add 5 percent to its net asset value.

Interfax