PetroChina Co. Ltd. (00857.HK, 601857.CN) said Thursday it will cap its annual capital expenditure at 300 billion yuan (US$49 billion) in the next few years as it reins in investment in pursuit of greater efficiency.
This year’s target capex will be 296.5 billion yuan, representing a 7 percent drop from 318.7 billion yuan in 2013, chairman Zhou Jiping said in Hong Kong. Last year’s figure was already 9.6 percent lower than the 2012 figure, company data shows.
Zhou said the firm will make up for the lower capex by introducing private and social capital into projects such as upstream businesses and shale gas developments. That is in line with state guidance to push through mixed ownership of oil and gas projects, he said.
Zhou also expects China’s natural gas market-oriented pricing reform to benefit the company since PetroChina supplies more than 70 percent of the gas used in China.
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