CITIC Resources is primarily engaged in the exploration, development and production of oil. The company also invests in coal mining, the import and export of commodities, electrolytic aluminium, bauxite mining and alumina smelting. With investment and trading as the dual driving forces for business development, the company operates in multiple nations including China, Australia, the Republic of Kazakhstan and Indonesia, running three upstream oil and gas operations and related trading businesses.
In 2024, CITIC Resources focused on its core mission of “improving quality and efficiency” to unleash the potential of oilfield extraction. The company conducted in-depth research to formulate drilling plans and carried out oil testing and trial extraction operations to steadily improve production levels.
Business highlights
In 2024, CITIC Resources achieved a total of approximately 17.65 million barrels of crude oil from its three oilfields—KBM, Yuedong and Seram Block—representing an increase of approximately 3.2% over 2023. KBM Oilfield continued to explore its potential for sustainable development by actively promoting exploration work to boost oil reserves. Meanwhile, enhanced production management coupled with maximising the potential of old wells resulted in the lowest natural decline rate of old wells in history. The production capacity expansion project for an asphalt plant of KBM, CASPI BITUM, commenced smoothly. Yuedong Oilfield achieved significant exploration and evaluation results in the Hainan-20 well block, leading to an upgrade of reserves in this area, which further enhanced asset value. Seram Block made significant progress in effectively reducing overall costs through rigorous management. By applying new technologies and processes, the oilfield was able to successfully mitigate the impact of its gradual depletion and extended its economic production lifespan.
Regarding the non-oil-and-gas business, CITIC Resources sold approximately 63,000 tonnes of electrolytic aluminium ingots and approximately 599,000 tonnes of coal in 2024. Meanwhile, CITIC Resources ventured into new product lines, establishing a trading and marketing team focused on crude oil trading in 2024. With the efforts of the team, the company generated trading revenue of approximately HK$5.93 billion. Additionally, the company generated profit after tax of about HK$110 million by converting its entire equity interest in Alumina Limited (AWC), a former associate of the Group, to Alcoa (AA) shares.
Business highlights
In 2024, CITIC Resources achieved a total of approximately 17.65 million barrels of crude oil from its three oilfields—KBM, Yuedong and Seram Block—representing an increase of approximately 3.2% over 2023. KBM Oilfield continued to explore its potential for sustainable development by actively promoting exploration work to boost oil reserves. Meanwhile, enhanced production management coupled with maximising the potential of old wells resulted in the lowest natural decline rate of old wells in history. The production capacity expansion project for an asphalt plant of KBM, CASPI BITUM, commenced smoothly. Yuedong Oilfield achieved significant exploration and evaluation results in the Hainan-20 well block, leading to an upgrade of reserves in this area, which further enhanced asset value. Seram Block made significant progress in effectively reducing overall costs through rigorous management. By applying new technologies and processes, the oilfield was able to successfully mitigate the impact of its gradual depletion and extended its economic production lifespan.
| Oilfields | CITIC Resources’ interest | Daily oil production in 2024 (share of output, barrels) | Change compared to 2023 (barrels) Change compared to 2023 (barrels) | Proven oil reserve estimates as of the end of 2024 (share of output, million barrels) Proven oil reserve estimates as of the end of 2024 (share of output, million barrels) |
|---|---|---|---|---|
| KBM (Kazakhstan) | 50% | 19,700 | 900 | 60.7 |
| Yuedong (China) | 90% | 5,948 | 66 | 21.5 |
| Seram Block (Indonesia) | 41% | 320 | -89 | 1.0 |