Top 10 National Oil Companies by production

Some have seen this as a worrying sign for the IOCs. As the NOCs’ powers increase and their operations spread out from within their own borders, surely they come in direct competition with their private brethren? The IOCs have reacted by stating that they have always done business in partnership with local governments and NOCs, and their increased cooperation in JVs with the more powerful NOCs would only be positive for all involved.

With this in mind, we take a look at the top 10 NOCs at present by oil production figures, to see who are the biggest national players when it comes to pumping the black gold out of terra firma.

1. Saudi Aramco (Saudi Arabia)
2. National Iranian Oil Company (Iran)
3. China National Petroleum Corporation (China)
4. Petroleos Mexicanos (Mexico)
5. Kuwait Petroleum Company (Kuwait)
6. Petroleos de Venezuela (Venezuela)
7. Abu Dhabi National Oil Company (UAE)
8. Nigerian National Petroleum Corporation (Nigeria)
9. Sonatrach (Algeria)
10. Rosneft (Russia)

1. Saudi Aramco (Saudi Arabia)

The world’s largest oil and gas company unsurprisingly tops the pile when it comes to oil production. To give you an indication of the company’s size, in 2007 it was the world’s eighth largest company in terms of gross revenue, taking in nearly US$200 billion. The sole purveyor of the world’s largest oil reserve, at around 267 billion barrels of oil, the company continues to go from strength to strength.

According to Energy Information Administration (EIA) statistics for 2009, Saudi Aramco clocked in at 9.26 million bpd of oil, surpassing all those in its wake. Considering its plans to increase production further in coming years, its place on top of the podium should remain fairly secure.

2. National Iranian Oil Company (Iran)

Iran holds the world’s third largest oil reserves and second largest gas reserves, so the 100% state owned National Iranian Oil Company (NIOC) has more than enough in its locker to support its position at number two on the list.

EIA statistics put the Iranian total production at around 4.03 million bpd. Interestingly, the nation’s industry has been hampered by US and UN sanctions, making much needed infrastructural improvements and project developments increasingly difficult to achieve. If these barriers are overcome and they can continue to raise production as desired, then there is room for considerable improvement.

3. China National Petroleum Corporation (China)

China’s National Petroleum Corporation (CNPC) overtook both Shell and BP in PIW’s top 50 oil companies for 2009, signaling the growing strength of the state-owned enterprise. Under the listed-arm of PetroChina, the company lays claim to proven reserves of approximately 3.4 billion barrels of oil equivalent, and is the world’s second largest company in terms of number of employees.

With domestic production procured through PetroChina, CNPC also has 30 international exploration and production projects, and in 2004 started construction of a pipeline from the Middle East to Xinjiang in China. Oil production figures in China stand at around 3.97 million bpd of oil, according to EIA statistics.

4. Petroleos Mexicanos (Mexico)

Despite only making it to number 11 on the PIW top 50 – due largely to the huge amount the company pays in royalties and taxes to the Mexican Government – Petroleos Mexicanos (Pemex) still remains one of the largest national producers in the world, and the largest Latin American company in terms of revenue: US$173 billion in 2008.

The company, and Mexico as a nation, has had to face the possibility that continued growth of its production would no longer be possible due to the country reaching its Hubbert’s Peak. Annual production has fallen every year since 2004, but despite this in 2009 Pemex scored roughly 3.19 million bpd, securing its position in fourth.

5. Kuwait Petroleum Company (Kuwait)

The large umbrella organization, Kuwait Petroleum Company (KPC), whose subsidiaries include the Kuwait Oil Company (KOC) and Kuwait National Petroleum Company (KNPC), comes in fifth for world’s largest oil reserves, with a proven 104 billion barrels to its name. It has enabled the small GCC country to become OPEC’s fourth largest exporter of crude oil.

With plenty of potential still to be realised, its rating of 2.59 million bpd results in a top five birth for the NOC. If major projects – such as Project Kuwait, which remains at a standstill due to disagreements between Parliament and the ruling Al-Sabah family – can begin to come to fruition, then KPC might expect to climb the leader board.

6. Petroleos de Venezuela (Venezuela)

With the largest amount of proven oil in South America at around 99.4 billion barrels, Venezuela’s state oil company, Petroleos de Venezuela (PDVSA) is one of the most successful NOCs in the world, ranking fourth – in front of Shell and BP – in the PIW top 50.

The country also claims that by including tar-like extra heavy crude oil found in the Orinico Belt, which has an estimated 235 billion barrels, Venezuela would have the world’s largest oil reserves. Regardless, it finds itself in sixth with 2.39 million bpd of oil produced, although President Hugo Chavez Frias will no doubt be looking to improve this in coming years.

7. Abu Dhabi National Oil Company (UAE)

The largest of the NOCs operating within the UAE, the Abu Dhabi National Oil Company (ADNOC) produces roughly 90% of the crude oil found in the world’s seventh largest holder of oil reserves. Although much focus has been placed on developing the abundant sour gas supplies found in Abu Dhabi, the company has bold targets, with the UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan announcing in 2007 that the country will produce 5 million bpd of crude oil by 2014.

At present, ADNOC produces in between 2 to 2.4 million bpd of oil, a large percentage of which comes from its Zakum field in Abu Dhabi. Again, the company will be hoping that with the projected increases in production predicted over future years, it will steadily rise up the chart as a result.

8. Nigerian National Petroleum Corporation (Nigeria)

Despite conflict in the Niger Delta region of Nigeria since 1990 over the exploitation of locals by foreign oil companies, Nigeria has still managed to maintain high levels of production, with over 50% of its exports destined for the US. The Nigerian National Petroleum Corporation (NNPC) was founded in 1977, and manages the existing JVs in the country with the likes of Shell, ExxonMobil, Agip, Total and Chevron.

Production stands in the region of 2.17 million bpd, however, the EIA contests that this may be significantly higher had it not been for persistent attacks on infrastructure, resulting in shut-in production and forcing foreign companies into declaring force majeure on oil shipments.

9. Sonatrach (Algeria)

Algeria’s national oil company Sonatrach nearly makes it into the top 10 of PIW’s top 50, falling short of Pemex and Total, but pips Russian giant Gazprom into 12th. Despite only being third amongst the largest reserves in the African continent – behind Libya and Nigeria – and its ongoing civil unrest, Algeria remains an attractive destination for oil exploration. Algeria’s Saharan Blend oil, at 45o API and 0.1% sulphur content, is among the highest quality in the world, and is very attractive to the EU market who must meet stringent EU regulations on sulphur content in fuel.

Approximate figures place Sonatrach’s production at 1.87 million bpd of oil. The company is currently developing new oil fields to compensate for the decline from older fields, and the Energy Minister Chakib Khelil said in March 2009 that Algeria’s long-term target was to maintain crude production at current levels.

10. Rosneft (Russia)

Despite being Russia’s second best performer on the PIW list, coming in 16th, Rosneft scores higher than its local competitor Gazprom in terms of oil production. Gas is the dominant resource in Russia; however the country still boasts roughly 60 billion barrels of proven reserves – most of which located in Western Siberia – while exploration and production in the untapped Arctic frontiers could yet increase this.

Rosneft scores 1.69 million bpd of oil, taking the last position in our top 10. Russian production levels have been on the decline since it peaked in the 1980s, but the country has seen levels rise once more into the 21st Century, and will continue to seek growth in face of ageing reservoirs.