Funds will be used to expand output, build gas pipelines PetroChina, the mainland's largest oil producer, started to sell bonds worth two billion yuan on the country's retail market yesterday as it seeks funds to expand production and build gas pipelines. The five-year, yuan-denominated bonds will carry a 3.76 per cent coupon in a sale arranged by BOC International (China) and China Securities, PetroChina said in a statement published in the Shanghai Securities News yesterday. The proceeds will go towards eight projects, including expanding production at the Daqing, Jilin and Changqing oilfields and building gas pipelines and chemicals projects that involve a combined investment of 35.2 billion yuan, PetroChina said. PetroChina, which last week said it pumped 4.1 per cent more oil and produced 25.4 per cent more gas in the third quarter on increased output overseas, is stepping up efforts to raise production at its oil and gas fields in the mainland to help meet the country's rising demand for energy. Capital investment of about 7.24 billion yuan this year at the Daqing field, the country's biggest and oldest, will help it pump 2.68 million barrels of crude oil annually, the company said, without giving comparative figures. Spending at the Jilin field will be about 3.22 billion yuan this year and about 4.42 billion yuan at Changqing, it said. Funds raised from the bond sale will also help finance the Zhongxian-Wuhan gas pipeline and related connections to a gas field in Sichuan, which involves an investment of 14.18 billion yuan. The pipeline will be able to transfer three billion cubic feet of gas a year. PetroChina produced 207 million barrels of oil in the three months to September and 322.4 billion cubic feet of gas. Oil and gas output grew 7.9 per cent to 260.7 million barrels of oil equivalent during the period.