28 Jul 2010 13:46

Yanchang Petroleum teams with Poly Group to explore Central African oil and gas

Shanghai. July 28. INTERFAX-CHINA - Shaanxi Yanchang Petroleum (Group) Co. Ltd., a Shaanxi Province-based oil producer, announced on July 27 that it has signed an agreement with China Poly Group Corp. to cooperate on oil and gas development in the Central African Republic.

According to the announcement, Yanchang Petroleum will hold a controlling interest in the cooperative exploration of the Block-B Oil and Gasfield.

The company did not disclose information regarding the block's potential oil and gas reserves.

In 2009, Yanchang Petroleum produced 11.21 million tons of crude oil, up 3.56 percent year-on-year, while its oil processing volume during the same period increased by 4.35 percent year-on-year to 11.90 million tons. By the end of this year, the company plans to produce 12 million tons of oil equivalent and raise its oil processing volume to 12.4 million tons.

This February, Yanchang Petroleum signed a contract with Thailand's Ministry of Energy for the rights to exploit a 3,960 square-kilometers oil block in central Thailand. In 2008, the company signed a cooperative agreement with Sino Union Energy Investment Group Ltd. to jointly develop an oil block in Madagascar.

Poly Group is a large state-owned conglomerate specializing in military products trading, real estate, entertainment and mineral resource development, according to the company's website.