CITIC Resources Holdings Ltd, the Chinese metals producer turned oil supplier, aims to produce 13 percent more crude oil from its field in Kazakhstan.

Output at the Karazhanbas field will rise to 40,000 barrels of oil a day this year from 35,500 barrels a day in 2007, its chief executive officer Sun Xinguo said in Hong Kong yesterday. Citic Resources bought the field from parent China Investment Trust & Investment Corp for US$1 billion last year.

China is encouraging its state-owned firms to scour the globe for energy resources as world oil prices rise. Citic Resources plans to expand its oil and natural gas exploration business to tap demand from the world's fastest-growing major economy.

"The current high international crude price is very favorable for our existing oil-producing assets," Sun said. "We will also look out for potential acquisitions of good assets."

The Karazhanbas field in western Kazakhstan holds an estimated 363.8 million barrels of oil reserves, Citic Resources has said. The firm also has 51 percent in the Non-Bula Block in Indonesia's Maluku province.

Citic Resources plans to raise the output of manganese this year to take advantage of soaring prices, Sun said. The firm produced 46,000 metric tons of the metal last year when manganese prices averaged 16,000 yuan (US$2,308) a ton, he said. Prices have hit US$4,000 a ton this year.