As the overseas listed platform for Yanchang Petroleum Group, Yanchang Petroleum International takes the pioneering role in extending the Group’s internationalisation strategy. In January 2014, Yanchang Petroleum International successfully acquired Canada's Novus Energy Inc., which became Yanchang Petroleum Group's first overseas oil and gas operation. At that time, Novus had an annual output of 250,000 tonnes of oil equivalent, with an annual revenue of RMB1 billion and an annual profit of RMB120 million.
In recent years, the fluctuation of international crude oil price has affected the industry, however, the internationalisation strategy of Shaanxi Yanchang Petroleum Group remained unchanged. According to the "13th Five-Year Plan", Yanchang Petroleum Group targets to produce 370,000 barrels of oil per day by 2020. With its current production (domestic and abroad) of 230,000 barrels per day, the Group has to catch up an additional 140,000 barrels per day. Overseas merger and acquisition will be an important direction for Yanchang Petroleum Group in boosting production capacity.
Yanchang Petroleum Group has recently established the International Cooperation Department and the Overseas Research Institute to commence in-depth cooperation with Yanchang Petroleum International, offering substantial financing and technical support for international expansion. At present, with the international oil price stabilising, the industry is gradually recovering. The Chinese "Belt and Road" initiative is also making progress. These favorable circumstances present a strategic opportunity for Yanchang Petroleum International to expand its development overseas, contributing to a promising future for the Company in the years ahead.
Li Yi,
Chairman of the Board
Xi'an, January 2018