Updated: 2005-06-13
URUMQI: Xinjiang Uygur Auto-nomous Region plans to overtake Northeast China's Daqing to become the country's largest oil production area in the next few years, said a top local government official yesterday.

The region, currently China's third largest oil producing area, plans to more than double its oil production to 50 million tons in the near future from 22 million tons last year, according to Ismail Tiliwaldi, chairman of the region.

In the long run, the region is expected to be pumping 100 million tons of crude oil a year, or nearly 60 per cent of China's total last year, he said in an interview with Beijing-based media, including China Daily. The targets, if realized, will help China greatly offset the slowing production of its senior oilfields in eastern areas.

As oilfields such as Daqing which accounts for one third of China's oil production become depleted, the central government is pinning its oil hopes on vast virgin fields in Xinjiang to boost production. Xinjiang sits on 30 per cent of the nation's total oil reserves and 34 per cent of its natural gas resources, said the chairman.

He vowed to further expedite oil exploration in potential areas, including Karamay, Turpan Basin and Tarim Basin.

The oil and gas industry accounted for 60 per cent of the incremental industrial value of Xinjiang last year.

Thanks to the growth of the oil and gas business, and the central government's financial support, Xinjiang has maintained a gross domestic product growth of more than 10 per cent annually for the past two years, well exceeding the national average.

The region's economic prosperity has underpinned its social stability.

No terrorist attacks have been reported in Xinjiang in the past two years, he said.

The tourism industry has not missed this recent stability. More than 300,000 foreign tourists visited Xinjiang last year, a jump of 87 per cent from 2003. And more than 12 million domestic travellers made their way to the region in 2004, bringing in revenue of 10.9 billion yuan (US$1.3 billion).

The chairman said the overall situation in Xinjiang was very good and all ethnic groups in the region were benefiting from the recent prosperity.