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China Petrochemical Corp, the nation's second-biggest oil company, said it might produce 1.9 per cent more crude oil and 11 per cent more gas this year as energy demand rises.

The company might pump 40 million tons of crude oil and 7 billion cubic metres of natural gas from domestic fields this year, said Sinopec Group, as China Petrochemical is known, in a statement on its website yesterday.

The company produced 39.27 million tons of crude oil and 6.3 billion cubic metres of gas last year, according to data from its website.

Chinese oil companies are increasing investments in oil and gas exploration to meet demands by the world's fastest-growing major economy, which expanded 10.7 per cent in the first three quarters of this year.

"The company will step up exploration efforts in 2007 to increase our self dependence in oil production," said Wang Tianpu, president of Sinopec Group's overseas-listed unit Sinopec, in its statement.

Sinopec Group's recoverable oil will rise by 45 million tons while its gas reserves will increase by 73.9 billion cubic metres in its domestic fields in 2006, as the Beijing-based oil producer steps up exploration, Sinopec Group said yesterday.

PetroChina Co, the listed unit of Sinopec Group's bigger rival, is aiming to increase 2007 gas production by 25 per cent, according to December 22 figures published by China National Petroleum Corp, the parent company.

PetroChina wants to expand gas output by 10 billion cubic metres next year, China National Petroleum said. PetroChina aims to produce 1.41 trillion cubic feet of gas this year, the company said in March.

Sinopec Group's overseas oil production may more than double to 4.5 million tons in 2006, the company said yesterday.

The company plans to expand output from Russia's Udmurtneft project to meet rising demand, company President Chen Tonghai said on November 10.

(For more biz stories, please visit Industry Updates)