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CNPC to lower project costs, cut operational spending

Thu Apr 23, 2009 9:53pm EDT

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BEIJING, April 24 (Reuters) - CNPC said it will lower oil and gas operational costs by 5 percent this year and project investment costs by 10 percent as part of measures to cope with spreading global financial crisis.

The parent of PetroChina (0857.HK)(601857.SS) said on its website (www.cnpc.com.cn) that it could potentially lower costs related to its normal purchases of about 200 billion yuan ($29.30 billion) for materials and equipment each year.

It did not say if its overall investments would be scaled down or whether any major projects would be delayed or cancelled.

CNPC, which operates most businesses via its listed PetroChina unit, has cut its oil production target this year by 4 percent from 2008 levels while reducing crude processing goals by 1.4 percent amid signs of weakened demand.

(Reporting by Chen Aizhu and Jim Bai; editing by Ken Wills) ($1=6.826 Yuan)



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