Oil & Gas Exploration and Production

In 2018, we added 84 million tonnes of proven oil reserve, 169 million tonnes of probable oil reserve, and 200 million tonnes of possible oil reserve. For natural gas, the newly added proven reserve was 165.5 billion cubic meters, that for probable reserve was 172.7 billion cubic meters, and that for possible reserve was 369.4 billion cubic meters. The annual crude production was 35.06 million tonnes. The production and sales of natural gas reached record high, with an annual production of 27.58 billion cubic meters, increased by 1.84 billion cubic meters year on year. Our newly added crude production capacity was 2.57 million tonnes, increased by 430,000 tonnes year on year. Our newly added natural gas production capacity was 1.9 billion cubic meters.

Oil & Gas Exploration

We achieved accomplishments of “12 new discoveries, 20 commercial discoveries and 6 potentials”, which exceeded the annual reserves task.

For oil exploration, through exploration in a larger area, crucial discoveries were made in the faulted zone of Number 1, Number 5 and Number 7 of Block 1, Shunbei area of Tarim Basin. Important discovery was also made in the buried hill of depression bed rock of Guaizihu, Yin-E Basin of Inner Mongolia, providing us a new area for oil reserve development. In addition, we also achieved commercial discovery in certain scale in Jiyang depression.

For conventional gas exploration, we for the first time reached high energy shoal of platform margin faced gas reservoir in Maokou formation, Sichuan Basin. High-production gas flow was achieved in risk exploratory well 7 of Yuanba, which demonstrated an excellent exploration future of Yuanba area with multi-formations. Important discovery was made in Leikoupo formation of forward structures in Guanghan slope belt in West Sichuan depression. New discovery was made in medium-basic volcanic rocks in Huoshiling Formation of Songnan.

For shale gas, the newly-added proven reserve in Weirong gas field of Sichuan Basin reached 124.7 billion cubic meters, marking another significant commercial discovery after Fuling gas field. We achieved stable industrial gas flow in 10HF well in Jinfo slope, Nanchuan, which was an important discovery for atmospheric shale gas exploration in complex formation.

Oil Field Development

We improved our construction scale for oil production capacity and reduced the decline rate of existing oil fields. We produced 6,000 tonnes of crude oil more than our annual plan.

For the new capacity, we added 57.73 million tonnes of reserve available for development, among which 45.17 million tonnes of reserve was developed. We made every effort to increase the production capacity with efficiency in Jiyang, Shunbei, Tahe and Qintong. The annual added production capacity reached 2.57 million tonnes, increased by 430,000 tonnes over last year.

For the existing capacity, we enhanced efforts to stabilize production. Thanks to the wide application of low-cost technologies for EOR, the natural decline rate was reduced by 0.5 percentage point. Continuous efforts were made on water-flooding, bringing down the natural decline rate by 0.6 percentage point. For heavy oil reservoirs, through strengthening total-process heat efficiency management, production was kept above 4.8 million tonnes, with the oil and gas ratio above 0.53. We adopted more water and gas flooding methods in carbonate fractured reservoir in Tahe, and reduced the natural decline rate by 0.8 percentage point. We popularized binary combination flooding and heterogeneous composite flooding technologies to enhance our recovery rates, with an incremental volume of 1.16 million tonnes through tertiary process. Various measures were taken to enhance oil recovery for 596 wells, increased the oil output by 62,000 tonnes. We constantly promoted profitable production, recovered well production capability and increased the in-operation rate of oil and water wells by 0.5 percentage point compared with the beginning of the year.

Natural Gas Development

For conventional gas, we strengthened the rolling exploration and reservoir assessment in west Sichuan gas field and North Hubei, and increased 119 billion cubic meters of reserve available for development. We constantly pushed ahead the capacity construction in Dongsheng and west Sichuan, and further analyzed the dynamic status for production adjustments and potential tapping of the gas fields including Puguang, Daniudi and Yuanba. Tremendous work was also done for solution gas recovery in Shunbei oilfield. We added 1.41 billion cubic meters production capacity annually, produced 20.58 billion cubic meters of gas, increased by 1.15 billion cubic meters year on year.

For shale gas, we actively pushed forward the capacity construction of Weirong shale gas project phase I, accelerated the surface engineering construction and the new wells’ production of Fuling project phase II, expedited pressure boosting engineering construction, and conducted upper gas reservoir development and well pattern infilling. We achieved a new annual shale gas production capacity of 500 million cubic meters, produced 6.62 billion cubic meters of gas, up by 620 million cubic meters compared with last year.

For coal-bed methane, we steadily arranged our intricate development in Yanchuan South gas field, and achieved an annual gas output of 380 million cubic meters.