China oil production report. Daqing deposit. Natural gas in China Oil and gas formation China

One of the options for solving the problem of energy vulnerability is also an increase in own production capacities, extensive and intensive development of the oil industry. For this reason, the importance of the South China Sea in the process of ensuring the energy security of the People's Republic of China is expressed not only in its importance as a trade route. The fact is that China's growing dependence on energy imports can be weakened by the resources of the SCS water area.

South China Sea, located in South-East Asia, is a very important water area for the PRC, since its depths can contain significant reserves of oil and gas necessary for the country. The Energy Information Service of the US Government Department of Energy cites the following figures: the resources of the South China Sea are about 11 billion bbl. oil and 5.3 trillion cubic meters. m of natural gas (and these are the proven, and not the estimated volumes of raw materials) South-China Sea Full Report [Electronic resource] / U.S. Energy Information Administration, 2014. P. 14 .. However, due to the impossibility at the moment to conduct global research In this area (this is due to the difficulties in defining the exclusive economic zones of coastal states), there is a possibility that the present reserves of the SCS water area may significantly exceed those values ​​that have already been proven. For example, according to analysts from the China National Offshore Oil Corporation (CNOOC), the water area contains approximately 125 billion bbl. oil and 14 trillion cubic meters. m of gas Brown D. More fuel to South China Sea disputes [Electronic resource] / Asia Times Online, 2013. URL: http://www.atimes.com/atimes/Southeast_Asia/SEA-02-120313.html (date of access: 14.04.2014).

Thus, the use of the subsoil and wealth of the South China Sea can provide the PRC with the necessary resources for a significant period of time and, therefore, become a guarantee of uninterrupted, stable economic development.

However, on the shores of the South China Sea, there are countries that are as interested in these resources as China.

Table 1. Proved reserves of oil and natural gas in 2012 in Southeast Asian countries located near the South China Sea (data for Cambodia are not available)

Source: BP Statistical Review of World Energy June 2013 BP Statistical Review of World Energy June 2013 [Electronic resource]. P. 4., 23., U.S. Energy Information Administration, * Philippines Analysis Note, 2014 Philippines Analysis Note [Electronic resource] / U.S. Energy Information Administration, 2013. URL: http://www.eia.gov/countries/country-data.cfm?fips=RP#pet (date accessed: 15.04.2014)

The countries listed in Table 1 are at a stage of strong economic growth, as is China. Due to this specificity, the needs of the states of Southeast Asia for a variety of resources will continuously grow. Nevertheless, it is worth noting that it is oil and natural gas that are especially important for these states. According to the data indicated in the article by A.S. Voronin. and Usova I.V., back in 2010, 76% of the primary energy consumption of the six most developed ASEAN countries accounted for oil and gas. Voronin A. WITH., Usov I.V. Decree. op. P. 162 .. Consequently, the extraction and supply of these resources is indeed strategic in nature. As can be seen from Table 1, these countries have relatively small reserves of both oil and gas, tenths of the world's total. Even with the current total oil production, the countries will have enough water for less than 15 years, and natural gas for 27 years. As a result, given the growing trend towards the consumption of environmentally relatively safe resources (the use of oil and gas is less harmful to the environment than the use of coal), the countries located near the South China Sea are undoubtedly showing a high interest in the wealth of the water area. The resources hidden under the waters of the SCS could give a serious impetus to the development of all countries of the subregion.

Table 2. Production and consumption of oil and natural gas in 2012 in Southeast Asian countries located near the South China Sea (data for Cambodia are not available)

Prod. oil (in million barrels per day)	Oil consumption (in million bbl per day)	Import (export) of oil (thousand bbl per day)	Gas production (in billion cubic meters per year)	Gas consumption (billion cubic meters per year)	Gas import (export) (in billion cubic meters per year)
Indonesia
Malaysia
Philippines
Total for these countries

Source: Source: BP Statistical Review of World Energy June 2013 BP Statistical Review of World Energy June 2013 [Electronic resource]. P. 23., U.S. Energy Information Administration, * Brunei Analysis Note Brunei Analysis Note [Electronic resource] / U.S. Energy Information Administration, 2013. URL: http://www.eia.gov/countries/country-data.cfm?fips=BX (date accessed: 15.04.2014), ** Philippines Analysis Note, 2014 Philippines Analysis Note [Electronic resource] / US Energy Information Administration, 2013.

However, in this case, the competition for the possession of energy resources is of a different nature depending on the type of fuel; the states of the region are fighting for the possession of over.

According to Table 2, the indicated Southeast Asian countries, like China, are net importers of oil. Already now, in accordance with Table 2, the volume of oil consumption is higher than the volume of its production by at least 1.46 million bbl. in a day. And, according to forecasts of the Asian Development Bank (ADB), dependence on net oil imports in Southeast Asia will increase from 29.6% in 2005 to 71.9% by 2030, and the production of this resource in Indonesia, Vietnam and Malaysia may not catch up with the growth rate of demand Energy Outlook for Asia and Pacific [Electronic resource] / Asian Development Bank, 2009. Sistem. Requirements: Adobe Acrobat Reader. URL: http://www.adb.org/sites/default/files/pub/2009/energy-outlook.pdf (date accessed: 03/02/2014) P. Xiii ..

A rather interesting situation in Southeast Asia is developing around natural gas. In general, as of 2011, the Southeast Asian countries did not experience a shortage of production volumes of consumed natural gas, moreover, the three states indicated in the table are net exporters of natural gas: Brunei, Indonesia and Malaysia. The latter two countries occupy a significant share in the Chinese LNG import market: they account for 29% of all supplies. However, the presence of large importers of liquefied natural gas, located close enough to China, still does not guarantee the energy security of the world's second economy, which is explained by two reasons. First, the ASEAN countries fear the growing role of China in the region and are very wary of the strengthening of economic relations between the members of the Association and the PRC. Indeed, one of China's political strategies is to strengthen economic ties with the countries of Southeast Asia. In addition, China always strives to interact at the level of bilateral relations, and not at the level of the Association, since in this way the country can achieve more beneficial cooperation for itself. For this reason, in order to reduce dependence on China, ASEAN countries seek to diversify their circle of buyers, which, undoubtedly, cannot but worry China. Secondly, in addition to the difficult political and economic situation in the region, according to ADB forecasts, the Southeast Asian countries may become net importers of this type of raw materials by 2030. Energy Outlook for Asia and Pacific [Electronic resource] / Asian Development Bank, 2009. P 13 .. This means that these states also face an economic choice: either the increasing demand for oil should be covered by their own production, or by importing the resource.

Thus, taking into account the constantly growing needs of both China and the Southeast countries for resources such as oil and gas, the problem of finding sources of these resources is becoming more and more urgent for these countries. It already bears a strategic character and, if it aggravates, can in the most direct way threaten the normal development of the states of the region.

Features of the geographical location of the main oil and gas producing countries of Southeast Asia are long coastlines, and some countries are, in principle, island states, which means: the main areas of oil production are in the offshore regions, which can be easily proved by the example of the Philippines. A map published by the Philippine Department of Energy (see Appendix 6) shows that most of the areas where mining contracts have been awarded are offshore, the Jose Rene D. Almendas coastal zone. The Philippines Energy Sector [Electronic resource] / Philippines Department of Energy, 2013. System. Requirements: Adobe Acrobat Reader. URL: https://www.doe.gov.ph/doe_files/pdf/Researchers_Downloable_Files/EnergyPresentation/SRDA_Energy_Sector_Clark.pdf (date accessed: 20.04.2014) P. 6 .. It follows that the water area of ​​the South China Sea is very a desirable area for countries whose exclusive economic zones (EEZ) are located in it: securing a significant part of the SCS maritime space would allow monopolizing the extraction of minerals. Thanks to these reserves, the problems of finding energy sources in each country could be solved. Therefore, it is in the water area of ​​the South China Sea that the “energy” interests of the coastal countries collide, both the states producing resources and those that could in the future extract these riches (for example, the Philippines, which, given the availability of these resources, would have an opportunity for active development ).

Thus, the importance of the SCS for China, in addition to ensuring the safety of trade routes, really determines the exceptional economic and energy attractiveness of the resource potential of this subregion of Southeast Asia, as well as the presence of serious competition from other developing states of Southeast Asia.

Despite the fact that China is one of the fastest growing economies in the world, the structure of energy consumption in it is very different from that of developed countries. The share of oil and gas in the country's energy balance is only 25%; per capita consumption marketable types of fuel in China reaches less than 1 ton of standard fuel per year, while on average in the world - 2 tons.

China's own fuel resources are already insufficient for the needs of its developing industry. Since 1993, China has become a net oil importer, which has meant a fundamental change in the energy market of the entire Asia-Pacific region. It is clear that in the long term, the volume of development of the oil and gas industry in China is unlikely to meet the internal needs of the economy, and in the near future the country will be forced to import oil and natural gas in increasing quantities.

Until recently, information about oil reserves in the PRC was classified as a state secret. In addition, the proven reserves differ significantly from the explored and potential ones. Many documentary sources of information do not take into account the varying degrees of probability of reserves; as the old oil fields were developed and new ones were discovered, the estimates changed frequently. For example, in the PRC press during the Cultural Revolution (1966-1969) and in the late 1970s (with the aim of attracting foreign companies for exploration), potential reserves were clearly overestimated. Even at present, the total data on reserves at individual fields and the general data for the country do not coincide.

Proved oil reserves in China in 1999 were estimated at 3.2 billion tons, which is approximately 2.4% of world reserves. According to Chinese data, reliable oil reserves on land are estimated at 5.3 billion tons and at 4 billion tons on the shelf.

Potential oil reserves have grown 5 times over 30 years (from 1966 to 1996), from 6 to 30 billion tons. 2.4%, and the so-called R / P Ratio, i.e. the ratio of reserves to production, adopted for China in 20 years).

Table 1

Oil production in China by years (million tons)

1949 - 0,12	1973 - 50,0	1986 - 131,0	1997 - 158,0
1957 - 1,40	1975 - 70,0	1987 - 134,0	1998 - 157-160
1958 - 2,25	1978 - 104,0	1988 - 137,0	1999 - 159-160
1962 - 5,75	1979 - 106,15	1990 - 139,0	2000 - 162 (estimate)
1968 - 10,0	1980 - 105,95	1991 - 137,0	2005 - 170 (forecast)
1970 - 20,0	1984 - 114,6	1995 - 140,3	2010 - 185 (forecast)
1971 - 38,0	1985 - 124,9	1996 - 155,6

Sources:

As can be seen from the table, for last years the growth rate of oil production slowed down due to the development of old fields. In the mid-1990s, the period of oil self-sufficiency for China ended.

table 2

Oil production and consumption by year (mln bbl / day, average)

A source:

Table 3

Oil consumption in China by years (million tons)

A source:

Table 4

Forecast of the deficit of oil consumption in the PRC by years (million tons)

	2000	2005	2010
Demand	195	220	265
Deficit	33	50	80

A source:

At present, China produces about 160 million tons of oil per year, and consumes 200 million tons. In 2000, oil imports amounted to about 60 million tons, mainly from Oman. Since it is difficult to accurately predict the pace of development of the Chinese economy, experts' assumptions about future imports differ: for example, some argue that in 2010 it could reach 70-90 million tons, while other publications give a figure of 120 million tons already in 2005 year.

At the same time, despite the shortage of oil, some of it was previously exported, mainly to Japan, and also (in small quantities) to the DPRK and Vietnam. However, the volume of oil exports has been steadily declining since the 1980s: if in 1986 China exported 28.4 million tons of oil, then in 1999 - only 8.3 million tons, while in 2000 the export stopped altogether.

The total length of oil pipelines in the country in 1997 was 9.3 thousand km. Attention is drawn to the largest energy pipeline from the city of Golmud (Tsaidam field) to Tibet to Lhasa with a length of 1080 km.

Oil fields

The largest group of oil fields under the general name Daqing is located in northeastern China in the basin of the Songhuajiang and Liaohe rivers (the so-called Songliao basin). The field, discovered in 1959, includes the Daqing, Daqing-E, Shengping, Songpantong, Changwo, Changcunlin, Xinchekou, Gaoxi, Putaohua-Abobaota oil fields. Oil reserves in Daqing were estimated at 800-1000 million tons, but recoverable reserves are decreasing every year.

Table 5

Oil production at Daqing field by year (million tonnes)

1975	11,1	1984	53,56
1978	50,37	1985	55,59
1979	50,75	1986	55,50
1980	51,5	1987	55,55
1981	51,75	1993	56,0
1982	51,94	1994	56,0
1983	52,63	1999	50,0

Sources:

The Daqing field is adjoined by the Liaohe field, which produced up to 10 million tons of crude oil per year in 1986-1987, and the Fuyui field with a production of 1-2 million tons. An export oil pipeline was laid from Daqing to the ports of Dalian and Qingdao, as well as to Beijing,

Anshan and the Dagang field - the largest in North China (the Banqiao, Tianjiahe, Gandong, Wansuzhuang, Gansi, Zhouqingzhuang fields; in the late 1980s - early 1990s, this field produced 3-3.5 million tons of oil per year).

In Eastern China, the most famous is a group of deposits under the general name Shengli: Jingqiu, Ihezhuang, Chengdong, Yangsanmu, Hekou Gudao, Gudong, Yunandongxin, Chun Haozhen, Shengto, Hajia, Shandian. In 1990, oil production here reached 33 million tons. Oil pipelines were laid from the field to Xi'an and Zhengzhou.

Table 6

Shengli oil production by years (million tonnes)

1975	3,2	1986	29,5
1978	19,5	1987	31,6
1983	18,4	1990	33,0
1984	23,02	1999	30,0
1985	27,03

A source:

In the Hebei province of eastern China, there is the Jingzhong field, where oil production in 1990 amounted to 5 million tons. Thus, about 40 million tons of oil are produced in East China per year.

In Southwestern China, the fields in the Sichuan province north of the city of Chongqing (Yinshan, Nanchong, Panlanchen) produce about 2.2 million tons of oil per year. By the way, in the Sichuan province, oil was extracted 600 years BC using bamboo pipes from shallow wells. In 1996, the construction of the Chengdu-Lanzhou oil pipeline began.

In southern China, onshore in Guangdong province, the Sanshui field produces about 2 million tons of oil per year.

In recent years, China has pinned great hopes on oil fields in the northwestern part of the Xinjiang Uygur Autonomous Region (Dzungaria, Karamai, Tarim, Turfan Hami, Qinghai, Yumen), where 30% of the country's total reserves are concentrated. In 1997, the entire region produced 16.4 million tons of crude oil, and in 2001, according to forecasts, production should increase to 23 million tons. billion tons. In the northern part of the depression there are deposits of Kan, Tamarik, Ichkelik, Duntsulitage, Dunchetan, Bostan, Yakela, Tugalmin, Tergen, Akekum, Santamu, Qunke, Lunnan. In the southern part of the depression, there is a group of Tachzhong fields (Tachzhong-1, Tachzhong-4, Tachzhong-6, Tachzhong-10), connected to the northern Lunnan field by a 315 km pipeline. In addition, oil fields have been discovered in the westernmost part of Tarim on the border with Tajikistan and Kyrgyzstan (Karato, Bashetopu). Oil production in the Tarim Basin in 1996 amounted to 3.5 million tons, in 1999 - 4.7 million tons, in 2000 it should grow to 5 million tons, and by 2010 - up to 14 million tons.

In Dzungaria, between the mountain systems of Altai and Tien Shan, there is an old oil deposit Karamay, explored back in 1897. Potential reserves of this deposit are estimated at 1.5 billion tons (Karamai, Dushanzi, Shisi, Mabei, Urho, Xiangzicze). There are pipelines Karamay-Urumchi and Karamay-Shanshan. Oil production at the field does not exceed 5 million tons.

The fields of the Tsaidam depression (Lenghu-3, Lenghu-4, Lenghu-5) in 1990 yielded 3.5 million tons of oil. Production is currently estimated at 1.5-2 million tons. The Lenghu-Lanzhou oil pipeline has been built.

Currently, more than 90% of the country's oil is produced onshore, but since 1969, test oil has been extracted on the shelves of the East China, Yellow and South China Seas and the Bohai Gulf. Oil fields have also been discovered on the shelf of the island. Hainan (Wenchang, Lingtou, Ledong). Potential oil reserves on the shelf of the South China Sea (which, however, are claimed by at least 12 countries in the region) are estimated at 10-16 billion tons. In the region of the South China Sea, 150-200 million tons of oil are currently produced per year (all countries in the region). Of this volume, 4.5 million tons of oil were produced on the entire shelf of China in 1993, about 15 million tons in 1996, and 16.2 million tons in 1997.

In 1994, on the shelf of the South China Sea, China produced 6.47 million tons of crude oil, in 1996 - 11.8 million tons. Currently, production has increased to 14-15 million tons, however, according to experts, the development of shelf deposits yielded generally disappointing results. Initial estimates of oil reserves in the Chinese sector of the shelf (up to 1.7 billion tons) were clearly overestimated in order to attract foreign investors.

Large oil reserves (300 million tons) have been explored in the Bohai Bay (the so-called Bozhun complex). The oil fields here are divided into blocks, which have been developed by foreign companies since 1979 (Chevron, Kerr McGee, Texaco, Agip, Samedan, Apache, Esso China Upstream, Wood Mackenzie, Phillips Petroleum International Corporation Asia together with the Chinese company CNODC). In 2000, oil production in the Bohai Bay amounted to 4 million tons.

In terms of crude oil refining, the total capacity of Chinese refineries in 1999 was 4.3 million barrels per day. The factories are located in the main cities of the country, as well as on the site of the largest deposits. However, the share of imports in raw materials for refineries is constantly increasing: the sulfur content in Chinese oil is increased, and this makes more profitable production petroleum products based on light Middle Eastern oil. At present, the largest oil refinery in China is being built in Danzhou, Hainan Province, the cost of the first stage of which is $ 2.2 billion.

Oil producing companies

Mining in China is vertically integrated and tightly controlled by the state. In 1998, the oil and gas industry was reformed, and two of the four then state-owned companies were merged. At the moment, oil and gas production in the PRC is engaged in:

China National Petroleum Co., CNPC. In 1998, CNPC assets totaled $ 57.8 billion, the company controls 70% of the proven oil reserves in the north, north-east and west of the country. Production volume is 107 million tons per year (1998). PetroChina Company Ltd was established in 1999, to which CNPC transferred most of its assets domestically, leaving overseas business and pipeline management;

China National Offshore Oil Corp. (CNOOC) with a capital of 1.8 billion. Branches: China National oil and gas exploration and development Corporation (CNODC), China offshore oil Nanhai East (CONHE);

China Petrochemical Corp., Sinopec. Assets - $ 46 billion, annually refines 36 million tons of oil.

In 2000, the share in oil gas industry Of China were distributed among these three companies as follows:

Table 7

	Oil production	Gas production	Oil refining
CNPC	67%	68%	45%
CNOOC	10%	17%	-
Sinopec	23%	15%	55%

A source:

There are also individual companies created for specialized purposes:

• China Petroleum Engineering and Construction Corp (CPECC) (construction of infrastructure for the oil sector, participation in the construction of oil refineries);
• The China Oil and Gas Bureau (CNB), which builds gas and oil pipelines;
• In 1997, the China National Star Petroleum Co was formed (oil production in the southern provinces of the PRC);
• Shanghai Petrochemical (refining in Northeast China), with sales of $ 1.6 billion;
• Zhenhai Referining & Chem. (refining in Southeast China), $ 1.3 billion in sales;
• In Xianggang (Hong Kong), the monopolist for the supply of oil, as well as the processing and storage of petroleum products is Japanese company Tokyo Electric Power Company.

The PRC has adopted fairly clear rules and regulations regarding the development of oil resources. It should be noted in this regard:

• Provisional Rules for Regulating the Registration of Oil and Natural Gas Exploration and Production Data (adopted by the State Council of the People's Republic of China in 1987);
• Ordinance on the Payment of Fees for the Use of the Oil Shelf Territory in the Development of Oil Resources (1968);
• Regulation on the protection of oil and gas pipelines (1969);
• Ordinance on Compensation for Damage in Seismic Exploration of Oil Deposits (1989);
• Temporary Ordinance on Payment for the Use of Fields in the Development of Continental Oil Resources through Cooperation between Chinese and Foreign Enterprises (1990);
• Regulations of the PRC on cooperation with foreigners in the development of onshore oil resources (1993).

The presence of a well-developed legal framework allows foreign companies to work successfully in China. By the beginning of 1998, more than 130 contracts had been signed with 67 foreign companies from 18 countries for the exploration and operation of oil fields on the shelf of the South China Sea. Together, they invested about $ 3 billion. Thus, a consortium of three companies (China Offshore Oil Nanhai East (CONHE) - 51% of shares, Amoco Orient Pertoleum - 24.5%, Kerr McGee China Pertoleum - 24.5%) invested $ 650 million in the Liuhua project - a field of 120 miles southwest of Hong Kong in the river delta. Pearl, the reserves of which are estimated at 160 million tons of oil. In 1990, the CACT group (China National Offshore Oil Corporation - 51%, Agip China BV, Chevron Overseas pertoleum Inc. - 49%) was formed with the participation of Texaco China B.V., which continues the exploration of another field - Huizhou in the delta of the river. Pearl, with an estimated production level of 5-6 million tons per year.

The country has a program for the construction of large tanks for storing petroleum products with a total volume of 2,171 thousand m?, Including in Shenzhen, Qingdao, on about. Hainan (Lingao), Shanghai (Pudong), Chengdu (Sichuan). Foreign companies are taking part in the construction - Agip, Feoso, Marubeni, Shell, Saudi Aramco, Sangyong, Mitsui. The companies Santa Fe (USA), Occidental Petroleum, JHN oil operation Co, Exxon Corp. also take part in the exploration of new fields.

International projects

As mentioned above, China currently imports 50% of its crude oil from Oman, with which a number of long-term agreements have been concluded. However, the PRC cannot be satisfied with such dependence on one supplier, therefore, options for long-term agreements for the supply of oil and gas from Saudi Arabia, Iraq, Peru, Kuwait, UAE, Brunei, Indonesia, Malaysia. China is seeking the right to participate in the development of oil and gas fields in Papua New Guinea, Sudan, Thailand, Venezuela; in Sudan, Iraq and Peru, rights were acquired to conduct prospecting and exploration work at a number of fields.

In accordance with the General Agreement between the Ministry of Energy and natural resources Of the Republic of Kazakhstan and the Chinese National Petroleum Corporation (CNPC) began the development of a feasibility study (FS) for the construction of a Kazakh-Chinese oil pipeline. The Kazakh part of the Aktau-Kumkol pipeline will be 1200 km, the Chinese part - 1800 km (through the XUAR). From the XUAR oil fields, the Chinese pipeline system continues to the city of Shangshan. If the pipeline is loaded with at least 20 million tons of oil per year, the pipeline can be extended to Lanzhou, from where there is already a main oil pipeline to Eastern China. The total length of the Aktau-Kumkol oil pipeline, thus, will be about 3,000 km at a cost of $ 2.4-2.7 billion and a guaranteed throughput of 20 million tons per year (maximum - 40 million tons).

Construction by distance and required investments is divided into three stages:

1. Kenkiyak-Kumkol - 785 km, $ 785 million.

2. Atasu - Alashankou (PRC) - 1,100 km, $ 1.3 billion.

3. Atyrau-Kenkiyak (410 km, $ 359 million) and Kumkol-Karakoin (199 km, $ 131 million).

In 1997, a framework agreement of intent was concluded, but in 1999 all feasibility studies were suspended.

The obvious advantages of the project include the absence of the risk of transit countries. Between 1996 and 1998, China, represented by CNPC, acquired for $ 4 billion a 60% stake in Aktobemunaigas JSC (AMG), which owns the Uzen field on the Mangyshlak Peninsula. At the same time, experts point to the obvious shortcomings of the project: its long length, the lack of a developed internal network connecting the XUAR and the eastern regions of China, the danger of a shortage of oil, since the pipeline can become profitable when pumping at least 20 million tons per year. In addition, the XUAR itself has not yet confirmed large estimated oil reserves in the fields of the Tarim depression. Kazakh oil will never be cheaper than Middle Eastern oil and can be viewed primarily from the point of view of the political need to diversify sources of hydrocarbons.

Observers emphasize that the Chinese side still considers the project as a whole ineffective, and Kazakhstan is forced to reckon with this conclusion.

The negative experience of cooperation between Kazakhstan and China should also be taken into account. Every year, since 1997, Aktobemunaigas has exported about 2 million tons of oil to China through Russia, supplying it via a direct pipeline to the Orsk oil refinery. Special orders of the Russian government exempted this oil from customs duties as transit oil. However, in January 2001, the term of the export privilege for AMG JSC expired, but the agreements and the export license were not reissued by CNPC. As a result, the Orsk refinery refused to accept Kazakhstani oil, dozens of oil wells, the houses of Aktobe residents stopped receiving gas produced along the way during oil extraction, the work of the Aktobe CHP was under threat. It was only with great difficulty that CNPC managed to reach an agreement with the owner of the Orsk Refinery, the Tyumen Oil Company. In addition, the Kazakh side noted that CNPC had not fulfilled its obligation to build a pipeline from Kazakhstan to Western China when purchasing AMG shares (oil is still delivered there via railroad) and does not keep up with the investment schedule stipulated by the agreement: in 1999 it was fulfilled only by 59%.

It is also worth noting the participation of the Chinese corporation CNPC in two joint projects with the Turkmen state company Turkmenneft to develop the Gumdag oil field, as well as fields on the shelf of the Caspian Sea.

Russian project

Prospects for importing oil from Russia seem quite obvious to China, thanks to the territorial proximity and the existing well-developed pipeline network in Russia, which can be easily extended for export to China. However, there is still no completed Russian-Chinese oil project. So far, only the project of an oil pipeline from the fields of the Krasnoyarsk Territory to China is at the stage of final approvals. It was expected that the agreement would be signed in July 2000 during the visit of Russian President V. Putin to the PRC, but this did not happen.

In February 1999, CNPC entered into an agreement on the preparation of a feasibility study for the project with YUKOS.

In December 1999, a memorandum was signed on the laying of an oil pipeline from Angarsk to China. The project cost was estimated at $ 1.7 billion, throughput pipes - 30 million tons per year for 25 years (production becomes unprofitable when the load is less than 20 million tons per year). The feasibility study was scheduled to be completed in 2000, but the Russian side was then unable to provide guarantees of a sufficient amount of oil. Initially, it was assumed that its main volume would come from Western Siberia, however, most of the local fields have already entered a period of production decline, and it turned out to be impossible to guarantee the necessary supplies. Then it was decided to reorient to the Yurubcheno-Tokhomskaya zone (YuTZ) of Eastern Siberia, the recoverable reserves of which are estimated at 900-1100 million tons - this is the largest undeveloped oil and gas field in Eastern Siberia. The Yurubchensky block, where the work is supposed to be carried out, contains about 300 million tons of recoverable oil reserves and is the most studied part of YuTZ.

A definite advantage of the project is the possibility of using the existing Tyumen-Omsk-Krasnoyarsk-Irkutsk oil pipeline, to which, however, branches have yet to be created. The license for geological exploration and development of the Verkhnechonskoye, Yurubcheno-Tokhomskoye and Sobinskoye fields belongs to the East Siberian Oil Company (VSNK), where YUKOS Oil Company owns 68% of the shares.

However, the large Kuyumbinskoye field in the same zone is being developed by Slavneft. The latter circumstance created significant difficulties for the project, since the two companies could not come to an agreement on key issues. It was only by September 2000 that YUKOS managed to acquire additional rights to develop the fields, which allowed it to reach parity with Slavneft and begin harmonizing its interests. At the same time, YUKOS stepped up work on the Tersko-Kamsky section of the Yurubcheno-Takhomskaya zone.

Another difficulty lay in the fact that, although as early as May 1999 The State Duma made a decision on the development of the Yurubchenskoye field on the basis of a PSA, the “Agreement” on production sharing at the field was never prepared, and the tax regime of the project, therefore, has not yet been determined. As for the Kuyumbinskoye field, it has so far only been recommended by the Government of the Russian Federation to the State Duma for consideration with a view to transferring it to the PSA regime.

Currently, two possible pipeline routes are being considered: through Mongolia and bypassing it. For Russian companies an economically more profitable route through Mongolia to Beijing is preferable, for CNPC - bypassing Mongolia from Angarsk to Harbin, to the Daqing field, then along the existing oil pipelines to ports

Dalian, Qingdao and others.

The estimated tariff for pumping oil along the route will be $ 30 per ton, while transporting oil from Oman costs China $ 10 per ton.

It is important that in China, a country with a planned economy, the directives for the 10th five-year plan (2001-2006) do not provide for the construction of either Kazakh or Siberian oil pipelines. Thus, the project is obviously not one of the projects being implemented in the next few years.

Reasons for today's failures

There is no doubt about the prospects of the Chinese market fuel cells, however, the future of Russia on it, despite the colossal reserves of raw materials, seems very uncertain. The essence of the problems facing Russia in this area, in our opinion, can be reduced to several points.

1. Unprofitable

Russian oil is not cheap, and the existing export payments and excise taxes, combined with the high cost of transportation, make it too expensive for the PRC. In 2000 alone, the rates of export customs duties for Russian oil increased from 15 to 32 euros per 1 ton, and there is no doubt that they will rise further, especially considering that Russia will face large-scale payments on external debts, funds for which are traditionally withdrawn from petrodollars.

2. Imperfection of legislation

Russian legislation in the field of field development has not yet been finalized; thus, there is no completed legal framework for the PSA, the contradictions between the PSA Law and the Tax Code have not been eliminated. If we take into account some dissatisfaction of the regional and federal authorities with the first experiments in the development of oil fields according to the PSA scheme, then the further prospects of the PSA in Russia become unclear. All this does not allow attracting the funds necessary for the development of new fields and the construction of pipelines.

In addition, other changes in legislation should be expected in the near future. Thus, the reform of the rules for admitting exporters to the main oil and gas pipelines began, for which a special commission of the Government of the Russian Federation was created. As a result, planning oil imports from Russia for foreign partners became much more difficult. It should be borne in mind that China is a state with a planned economy and a powerful bureaucratic system, for which any changes in the legislation of a partner country, even in a more advantageous direction, is a reason to completely curtail contacts and wait until

everything will “settle down”.

3. Lack of government guarantees

China traditionally prefers to work in an environment where cooperation at all stages, starting from preliminary negotiations, is backed by reliable government guarantees. In addition, it is expected that the positions of the companies with which negotiations are underway and the states will be coordinated, which is not to be expected in Russia. In the same cases when several Russian companies act simultaneously with different, not coordinated with each other

with proposals, while referring to the support of the Russian state, one can reasonably expect the Chinese side to refuse to perceive these proposals as real.

4. Misunderstanding of the specifics of the relationship

The case of Aktobemunaigaz (and comments on it in the Russian and Kazakh press) is interesting because it demonstrates the lack of understanding in our business world (meaning both Russia and the CIS countries) of the specifics of the relationship between Chinese business and the Chinese state. Therefore, the same groups work with China in our corporations that negotiate with Western oil companies, which leads to numerous mistakes.

Failure by the Chinese to fulfill their obligations is the norm for business in those cases when the desire to “get cheaper, give more expensive, not bear the costs of previous obligations” is not balanced by the bureaucratic apparatus. From here, for example, a myth was born about the poor quality of Chinese goods. You need to understand that in the Chinese state, business is always slightly below the state apparatus. This moment and other features of Chinese thinking require Russian companies to create permanent groups to work specifically with China (and in China), and not the usual idea for Russians that everything or almost everything can be thought out and prepared directly in Russia. Doing business with the Chinese oil and gas sector cannot follow the Russian or European scheme.

LITERATURE:

1. BP Amoco Statistical Review of World Energy. 1994.

2. Energy in Japan. 1989, # 5.

4. OPEC Petroleum (general review). 1997-1998.

5. OPEC Petroleum. 1993, # 2.

6. Petroleum Economist (review). 1997-1999.

7. Petroleum Economist. 1995, # 9.

8. Ibid. 1996, no. 1.

9. Ibid. 1996, no. 2.

10. Ibid. 1997, no. 2.

14. State Petroleum and Chemical Administration (China). 1999.

15. Wood Mackenzie Statistical Review.

21. IVD RAS, express information. 1996, no. 5.

23. International life. 1999, No. 10.

24. Oil and gas vertical. 1999, No. 2-3.

25. Ibid. 2000, no. 2.

26. Oil of Russia. 2000, no. 2.

29. Expert. 2000, No. 13.

30. China in the XXI century. Abstracts // IFES RAS. M., 2000.

31. Oil and gas vertical. 2000, no. 11.

32. Expert, 2000, No. 45.

33. Oil and gas vertical. 2000, No. 7-8.

34. Nezavisimaya Gazeta, 27.02.2001.

35. Financial and economic bulletin of the oil and gas industry. 2000, No. 4.

36. Oil and gas vertical. 2000, no. 12.

Georgy Dmitrievich BESSARABOV - presenter Researcher Department of Asia and the Asia-Pacific Region, Russian Institute for Strategic Studies

Alexander Dmitrievich SOBYANIN- Deputy Editor-in-Chief of the analytical magazine "Profi"

According to statistics, today the People's Republic of China ranks third in the world in terms of mineral reserves (about 12% of the world's total). Geologists have confirmed that in the depths of the PRC there are deposits of ten types of energy resources, forty-six types of ferrous and non-ferrous metals, more than ninety types of non-metallic ores, eight types of precious and rare metals.

Of particular importance for the country are the huge reserves of coal (mainly coal), for which it ranks first in the world: the volume of its explored reserves is estimated by geologists at one trillion tons. In addition, China is now the world's largest gold producer (about 430 tons annually).

Features of the relief of China

The relief of China is very diverse, and geographers usually distinguish three main regions on its territory:

• The Tibetan Plateau;
• Belt of mountains and high plains;
• Low accumulative plains.

The Tibetan Plateau, located in the southwest of the country, has an average elevation of 4,877 meters above sea level and has a total area of ​​2.5 million square kilometers. In the Tsaidam depression located on it (altitude - from 2,700 to 3,000 meters above sea level) there are large deposits of iron ores, coal and oil.

The belt of mountains and high plains is located to the north, northeast and northwest of the Tibetan Plateau. A large oil field has been explored in its western part, and deposits of iron ores and coal... Low accumulative plains are located in the eastern part of China and account for about 10% of the total area of ​​its territory. They are composed of sediments of large and small rivers.

Types of minerals in China

The People's Republic of China possesses practically all types of minerals. In this country, large deposits of coal have been explored and are actively being developed (the volume of its annual production is more than 3500 million tons), very significant volumes of oil.

In addition, China has very significant deposits of shale, and therefore it is planned that in the near future the country will become one of the leading producers of shale gas (the Chinese are going to increase its production to 100 billion cubic meters annually by 2020).

Resources and deposits of China

The main coal deposits in China are located in the Shaanxi provinces (30% of the total production), which is often called the "house of coal" in the Celestial Empire.

There are about 300 oil fields in this country today, and most of them are located in Shandong province (Shengli field), Heilongjiang (Daqing field), in Xinjiang Uygur Autonomous Region (Khadesun field), as well as in some other regions of the country ( including on its continental shelf).

The largest iron ore deposit (Anshan) is located in Liaoning province. As for the non-ferrous metal ores, the largest copper ore deposit (Densing) is located in Jiangxi province. The richest deposits of tungsten ores were found in the same region.

Vladimir Khomutko

Reading time: 5 minutes

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Development of oil production in China

China has the world's largest economy. The country's own hydrocarbon reserves are clearly insufficient. Starting in 1993, the People's Republic of China began to turn into one of the largest exporters of "black gold" in the world, which significantly influenced the energy market of the entire Asia-Pacific region. Despite some recent slowdown in Chinese economic growth, the country's demand for hydrocarbons will only grow in the short term.

Until the 90s of the last century, information about the oil reserves of this country was a state secret. In addition, one should distinguish between potential reserves of raw materials and explored ones.

To this day, experts are forced to be content with the data provided by the Chinese side. According to these data, the volume of reliable Chinese oil reserves on land is 5 billion 300 million tons, and on the shelf of the Pacific Ocean - 4 billion tons.

Despite the shortage of oil produced in China for its own needs, some of it was even exported for some time (mainly to Japan, and a little to North Korea and Vietnam). However, since 1980, exports have been steadily declining. For example, if in 1986 28 million 400 thousand tons of crude oil were exported from the PRC, then in 1999 this figure was only 8 million 300 thousand tons, and since 200 export deliveries have stopped altogether.

The total length of the Chinese main oil pipelines exceeds 10 thousand kilometers.

One of these highways is the pipeline connecting the Tsaidam field (Golmud city) and Tibet (Lhasa city). Its length is 1080 kilometers.

The largest group of oil fields in this country is concentrated in the northeast of this country, in the basin of the Liaohe and Songhuajiang rivers (Songliao oil basin). This group of deposits is collectively called Daqing.

This oil-bearing province combines the oil fields of Changwo, Daqing, Daqing-E, Xinzhou, Shengping, Gaoxi, Songpantong, Changcunlin and Putaohua-Abobaota. The total volume of reserves in this region was estimated from 800 million to one billion tons of "black gold", but intensive development has significantly reduced the reserves of these fields.

Not far from the Daqing group of deposits is another Chinese deposit - Liaohe, from which in the mid-80s of the last century, up to 10 million tons of "black gold" were obtained annually. Also nearby is a field called Fuyui, with an annual volume of extracted raw materials up to 2 million tons per year.

The Daqing oil fields are connected with the ports of Qingdao and Dalian, as well as with the capital of the People's Republic of China, Beijing, the Anshan region and with the Dagang field (the largest in North China) by a pipeline system. At the end of the last century, up to three and a half million tons of crude oil were obtained from the Dagan field per year.

The most famous fields in Eastern China are the fields, which are united by the common name Shengli.

This group includes such oil fields as Gudong, Jingqiu, Chengdong, Yihezhuang, Yangsanmu, Shengto, Hekou Gudao, Yunandongxin, Hajia, Chun Haozhen, and Shandian. At the turn of the twentieth and twenty-first centuries, up to 33 million tons of raw materials were mined here annually. Shengli is connected by oil trunk pipelines with the cities of Zhengzhou and Xinan. Also in the eastern Chinese province of Hebei there is an oil-bearing region called Jingzhong, with an annual production of up to five million tons.

If we talk about the southwestern provinces of China, then there are also oil deposits, concentrated in the Sichuan province (north of the city of Chongqing). These deposits are called Nanchong, Yinshan and Panlanchen.

The volume of production is about 2 million 200 thousand per year. It was in this Chinese province, 6 centuries BC, that the Chinese from shallow workings with the help of bamboo.

In Guangdong Province (South China), there is oil at a field called Sanshui. The volume of production is about two million tons of oil annually.

Recently, the PRC has pinned great hopes on its northwestern "black gold" deposits, concentrated in the west of the Xinjiang Uygur region of China. This autonomous region includes Yumen, Dzungaria, Qinghai, Karamai, Turfan Hami and Tarim.

According to Chinese experts, about 30 percent of China's oil reserves are located here. If in 1997 these fields produced 16 million 400 thousand tons of raw materials per year, then in 2001 this figure increased to 23 million tons. The largest fields in this province are the fields of the Tarim Basin.

The volume of explored reserves here is 600 million tons, and potential - almost 19 billion. In the north of this depression, there are concentrated industries called Tamarik, Kan, Ichkelik, Dunchetan, Duntsulitage, Yakela, Bostan, Tugalmin, Akekum, Tergen, Qunke, Santamu and Lunnan. In the south of the Tarim Basin, a group of industries under the general name of Tachzhong is concentrated. They are connected with the northern part (the Lunnan fishery) by a pipeline with a length of 315 kilometers.

In the west of Tarim (border with Kyrgyzstan and Tajikistan), oil-bearing regions (Bashetopu and Karato) are also open. More than 14 million tons of crude oil were obtained from the fields of the Tarim Depression in 2010 alone. In Dzungaria, between Altai and Tien Shan, there is the old Karamai oil field, discovered back in 1897.

The potential reserves of this oil-bearing region are estimated at one and a half billion tons. From here the Karamay - Shanshan and Karamay - Urumqi pipelines were laid. The annual production volume is about five million tons. In the Tsaidam Depression, there is a group of fields called Lenghu, producing up to 3.5 million tons of "black gold" per year. There is an oil pipeline connecting Lenghu and Lanzhou.

Currently, 90 percent of China's oil is produced onshore. Offshore oil production began in 1969 on the shelves of the Bohai Bay, the East South China and the Yellow Seas. There are proven oil deposits on the shelf of Hainan Island.

Potential oil reserves in the South China Sea, on the shelf of which 12 countries of this region claim, are estimated by experts from 10 to 16 billion tons. All states of this region annually mine from 150 to 200 million tons of "black gold" on this shelf. Of this amount, China accounts for just over 16 million.

If we talk about the Chinese oil refining industry, then the total capacity of its enterprises is more than 5 million barrels of raw materials per day.

Chinese refineries producing petroleum products are concentrated in large Chinese cities and close to the most important fields. The share of imported raw materials for this sector of the Chinese economy is gradually increasing, since Chinese oil grades are characterized by a high sulfur content, which makes it more profitable to process light Middle Eastern grades of this mineral. The largest Chinese refinery is a plant located in Hainan province (Danzhou city). The first stage of this enterprise cost 2 billion 200 million US dollars.

Major Chinese oil companies

Mining in China is under tight government control and vertically integrated. At present, after the 1998 restructuring, the largest oil companies in China are three:

• China National Petroleum Corporation (CNPC). This company controls 70 percent of the state's explored oil resources, concentrated in the northern, northeastern and western provinces. In 1999, a new subsidiary was formed called PetroChina Company Ltd, which received most of the domestic assets of the national corporation from CNPC. CNPC itself retained the entire overseas business, as well as the management of the oil pipeline system.
• China National Marine Petroleum Corporation (CNOOC). With subsidiaries CNODC and CONHE. As the name implies, it is engaged in offshore oil production.
• China Petrochemical Corporation Sinopec. It is in charge of the Chinese oil refining industry.

In addition to these three giants, there are other companies that were created for highly specialized purposes:

• CPECC is engaged in the construction of infrastructure for the oil economic sector, and also takes part in the construction of oil refineries.
• China Petroleum Bureau (KNB) - there are several such enterprises, their main task is the construction of pipelines.
• Production in southern China is carried out by a company called China National Star Petroleum Co, formed in 1997.
• Shanghai Petrochemical is engaged in oil refining in the north-east of China.
• Zhenhai Referining & Chem - is engaged in oil refining in the southeast of China.

A fairly well-developed legal framework made it possible for foreign corporations to successfully start working in this country. Back in 1998, 130 contracts were signed between the PRC and 67 foreign companies representing 18 countries of the world, allowing them to explore and operate oil fields located on the shelf of the South China Sea. The total volume of attracted investments amounted to almost 3 billion US dollars.