CNPC Discovers Oil, Gas in Two Kazakhstan Blocks

By Wang Ying

Aug. 18 (Bloomberg) -- China National Petroleum Corp. said it has discovered oil and natural gas in two blocks in Kazakhstan as the biggest Chinese oil producer steps up exploration to meet rising domestic demand for energy.

PetroKazakhstan Inc., a unit of China National, made the discoveries in the Karaganda and Doshan blocks, the Beijing- based company said in a statement on its Web site today.

Chinese oil companies have boosted investment in domestic and overseas fields in recent years to increase production as energy consumption rises in the world's fastest-growing major economy. China National paid $4.18 billion for PetroKazakhstan in October 2005, sealing the country's biggest energy takeover.

The Karabulak-2 well yielded 203.2 cubic meters of oil a day, China National said in the statement. Daily oil flow at the Doshan-14 well reached 108.8 cubic meters. Oil output at the Doshan-15 well was 33.89 cubic meters a day and natural gas flow was 173,100 cubic meters daily, as of July 12.

``Discoveries in the two blocks prove good exploration prospects and commercial value of the area,'' said the parent company of Hong Kong-listed PetroChina Co.

Oil prices in New York have gained 62 percent in the past year, spurring investments in new fields. The benchmark contract reached a record $147.27 a barrel on July 11.

To contact the reporter on this story: Wang Ying in Beijing at ywang30@bloomberg.net