CITIC Resources’ three oilfields produced an average daily yield of 49,700 barrels (100% basis), a 3% increase compared with 2014. However, primarily due to low oil prices and impairment provisions made in respect of its three oilfields, the business recorded a substantial year-on-year loss.
JSC Karazhanbasmunai (KBM), a 50% joint venture between CITIC Resources and JSC KazMunaiGas Exploration Production, produced a daily average of 39,100 barrels (100% basis), which was comparable to 2014. During the year, KBM also obtained approval from the government of Kazakhstan to extend its existing right to explore, develop, produce and sell oil until 2035.
The Yuedong oilfield in Liaoning Province, China resumed production at the end of 2013. Average daily production increased by 15% from 2014 to 7,250 barrels (100% basis) following the commencement of production at Platform C (the third artificial island) in 4Q 2014 and employment of thermal recovery.
Seram Island Non-Bula Block in Indonesia, in which CITIC Resources holds a 51% interest, ended the year with an 18% increase in average daily production to 3,350 barrels (100% basis) following the successful drilling of two new development wells. During the year, material gas discovery was confirmed in the Lofin area, which based on estimates* by an independent petroleum consulting firm contains, as of 31 August 2015, 2,020.1 billion cubic feet and 18.25 million barrels respectively of recoverable gas and condensate (2P plus 2CR; and 100% basis), and in aggregate equivalent to a total of 354.9 million barrels of oil equivalent.
- * : in accordance with the classifications and definitions promulgated by the Upstream Oil and Gas Executive Agency of Indonesia
- 2P: proved contingent reserves plus probable contingent reserves
- 2CR: low estimate contingent resources plus best estimate contingent resources
CITIC Resources holds a 14% participating interest in the Coppabella and Moorvale coal mines joint venture and interests in a number of coal exploration operations in Australia.
In China, CITIC Limited has a 30% interest in Xin Julong coal mine in Shandong Province with a production capacity of 7.8 million tonnes. It achieved full production in 2015.
Sunburst Energy Development manages a number of coal-fired power stations in China, with a total installed capacity of over 6,000 MW. In 2015, these stations yielded total electricity generation of 30.1 billion kWh, contributed in large part by the Ligang Power Plant in Jiangsu Province, one of the largest coal-fired power stations in the country with installed capacity of 3,900 MW. Despite a 6.6% drop year-on-year in total power generated, caused primarily by the economic slowdown in China, we ended the year with a higher net profit than in 2014 because of the lower cost of coal.
In 2015, we also proactively explored opportunities in renewable energies, including investing in a solar power project in Hebei Province, China. Upon completion, its two units will each generate 50MW of installed capacity.