The western Xinjiang Uygur Autonomous Region became China's second largest oil production base in 2008 with an output of 27.4 million tonnes, up 1 million tonnes from 2007.

According to Thursday's Chinanews.com., Xinjiang overtook Shangdong Province, the previous second largest.

Xinjiang ranked third from 1997 to 2007. Daqing in the northern Heilongjiang Province leads with annual output of 40.2 million tonnes.

Output of oil in Xinjiang is expected to hit 28 million tonnes in 2009, a new record.

Oil and gas are abundant in Xinjiang. Reserves are estimated at 20.9 billion tonnes of oil and 10.8 trillion cubic meters of gas.

Proven reserves of oil and gas reached 3.9 billion tonnes and 1.4 trillion cubic meters.

In 1990, Xinjiang produced only 7 million tonnes of oil but recorded annual growth of more than 1 million tonnes thereafter, accounting for 40 percent of the total growth of 2.7 million tonnes nationwide each year. It offset decreased production from the eastern oilfields.

Oilfields in Xinjiang have been stepping up production in the face of rising imports and their output has been rising.

Xinjiang Oilfield Co. took fourth place in terms of oil production in 2008, and Tarim Oilfield Co. and Sinopec's North Branch were listed as the seventh and the ninth, respectively.

(Xinhua News Agency January 2, 2009)