The world's fourth largest oil company Total is expanding its business in China's oil and gas exploration and production sector.

 

Charles Mattenet, Total's senior vice president for Asia and the Far East, told Xinhua on Tuesday that his company plans to start exploring in north China's Ordos Basin next year with its partner PetroChina Company Ltd.

 

Total expects to invest US$60 million to 80 million in it's China project between 2007 and 2008, amounting for nearly 5 to 6 percent of Total's worldwide budget for exploration and production, said Mattenet.

 

France-based Total and PetroChina, a subsidiary of China's largest oil company China National Petroleum Corporation (CNPC), signed a product sharing contract (PSC) in March to develop natural gas in the South Sulige block, which has a proven gas reserve of more than 100 billion cubic meters.

 

The Sulige project is Total's first exploration project in China since the world oil giant returned to the country after an absence of nearly 15 years.

 

Total came back to China because of improved investment conditions and the country's fast growing oil and gas market, said Mattenet.

 

PetroChina has called for tenders on 12 blocks of land in another region of northwest China known as the Tarim Basin last July.

 

The tenders were international and open. Total is acquiring data and evaluating these blocks, said Francois Issard, Total's President of Exploration and Production Ventures in China.

 

Total will compare opportunities presented in the Tarim Basin with other exploration opportunities around the world, said Jacques de Boisseson, General Representative of Total in China, adding that Total will offer a competitive program if it bids for the Tarim blocks.

 

Deepwater exploration in China's offshore is another field Total is interested in. Although no contracts have been signed, Total is researching possible partnerships with Chinese companies, said Mattenet.

 

Total is also offering technology advice to PetroChina in handling sour gas in Southwest China, said Mattenet. Sour gas which is made up of carbon dioxide and hydrogen sulfide is difficult to handle as witnessed by a gas well blowout in Kaixian County, southwestern Chongqing Municipality, that killed over 230 local people in December 2003.

 

Total is also working with Sinochem to open 500 gas stations around the country in 2010.

 

China's first Sino-foreign joint venture oil refinery run by the Dalian West Pacific Petrochemical Company is now 22 percent owned by Total. The refinery went into production in 1996.

 

(Xinhua News Agency December 6, 2006)