"Overseas operation makes up 60-70% of the total business of global giants like ExxonMobil," said the chairman of China National Petroleum Corp (CNPC), Ma Fucai. "We are working towards that long-term goal."

In order to achieve this, Mr Fucai said CNPC plans to produce 35 million tons of oil in overseas reserves by 2005. Last year, CNPC's overseas output reached 21.2 million tons, 5 million tons more than 2001.

Mr Fucai's comments came as CNOOC this week announced that profits last year rose by a marginal 0.5% over 2001, on turnover of US$42.3 billion.

Despite lower oil prices impacting on revenue, Mr Fucai said cost cutting as well as stable oil and gas production produced a better than expected result.

Last year, the company produced 117.6 million tons of oil, a slight rise from 106.5 million tons in 2001. Gas output rose to 23.3 billion cubic metres compared to 20.6 billion cubic metres in the previous year.