PetroChina Restores About 10% of Oil Output at Northern Field After Floods

PetroChina Co., the nation’s largest oil producer, restored about 10 percent of its daily crude production at Liaohe field in northeastern China after heavy rains shut more than 1,500 wells.

Operations at 150 wells had resumed as of July 29, restoring output of about 500 metric tons a day, parent China National Petroleum Corp. said in its online newsletter today.

Heavy rains have caused flooding and landslides that destroyed almost 450,000 homes and more than 400,000 hectares of farmland since the beginning of July, the Ministry of Civil Affairs said on July 27. CNPC said the flooding had affected more than 5,600 tons a day of production, or 41,378 barrels a day. That’s equivalent to 1.8 percent of PetroChina’s daily output last year.

PetroChina is taking steps to restore oil production at the field that spans the provinces of Liaoning and Inner Mongolia, according to CNPC.

Seventeen PetroChina gas service stations in neighboring Jilin were inundated by floodwaters after the province was hit by the heaviest rains in a century, CNPC said.

China Petroleum & Chemical Corp., the country’s second- largest oil producer, said on July 22 that it had shut some oil wells in southern China because of flooding.

--Winnie Zhu. Editors: Ryan Woo, Amit Prakash.

To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net

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