The oil and gas output of Qinghai Province will surpass 10 mln tons by 2010, making the province an energy base linking Tibet and Gansu, said Song Xiuyan, Governor of the Qinghai Province.

As an important production base of natural gas and oil, Qinghai has a bright prospect in oil exploitation. With advancement made in oil exploitation in recent years, the gas and oil output has increased from 2 mln tons in 2002 to 4.5 mln tons in 2004. The output is expected to exceed 10 mln tons by 2010, including 3 mln tons of crude oil and 7 billion cubic meters of natural gas, Song said.

With extension of gas and oil pipelines, the oil and gas resources of the Qinghai oilfield have benefited Gansu and Tibet; hence an important energy base on the Qinghai-Tibet Plateau, said Song, the sole female governor in China.

Song said twenty-five oil and gas fields have been discovered in Qinghai oilfield in the past fifty years. Three exploitation bases have been built in Dunhuang, Germu and Huatugou respectively.

It is reported the Qaidam basin of Qinghai Province is one of the strategic oil and gas reserves of China, having 2.1 bln tons of oil and 250 bln cubic meters of natural gas.

By People's Daily Online