China’s biggest oil major by market value is “actively engaged” in talks to swap North American assets with international rivals in an effort to staunch losses on high-cost deposits after a collapse in crude prices.

PetroChina, the listed arm of China National Petroleum Corp, will also cut almost 10 per cent in exploration and production spending compared with last year in response to a near-50 per cent plunge in oil prices since last summer. The capital spending cut mirrors moves by the likes of BP and BG Group — two of Europe’s biggest energy groups. Domestic rivals Sinopec and Cnooc have also announced budget reductions.

Wang Dongjin, vice-chairman, said yesterday that the swap negotiations centre around unconventional assets in Canada, which require high oil prices to be profitable.