China plans to increase capital spending on oil and gas despite the risks posed by the conflict in the Middle East
The Chinese oil and gas company PetroChina has announced plans to increase spending on exploration and development, despite potential supply disruptions caused by the war in the Middle East.
This was reported by Nikkei Asia.
In its report for the past year, PetroChina stated that its capital expenditures in the oil, gas, and new energy segments will increase by 7.7% year-over-year in 2026, reaching 220.8 billion yuan (approximately $32 billion).
For 2025, the company reported revenue of 2.86 trillion yuan (approximately $400 billion) and net profit of 157.3 billion yuan ($23 billion), which is 2.5% and 4.5% lower, respectively, than in 2024. The decline in revenue is attributed to lower oil prices.
Despite this, the results exceeded analysts’ forecasts compiled by S&P Capital IQ.
The company’s production currently stands at approximately 2.5–2.7 million barrels of oil per day. The gas segment is actively expanding and is already a key growth driver. Total production exceeds 4 million barrels of oil equivalent per day.
PetroChina employs approximately 400,000 people.
On Tuesday, oil prices remained virtually unchanged as investors weighed the likelihood that U.S. President Donald Trump would halt military action against Iran.
As a reminder, the global energy market was shaken by a new wave of rising oil prices following a series of attacks by Yemeni Houthis on Israeli territory.
As a reminder, the conflict surrounding Iran has seriously impacted financial markets.
Also, the small island of Khark is key to Iran’s economy.
