China's Sinopec Finds Shale Oil at Shengli Field

Tom Daly
Tuesday, November 2, 2021

A unit of state-run oil Chinese and gas major Sinopec Corp has found an initial 458 million tonnes (3.34 billion barrels) of geological shale oil reserves at its Shengli field, the official Xinhua news agency reported on Tuesday.

Shengli, in Shandong province, is one of China's largest conventional oil and gas fields but Sinopec, has been exploring the Jiyang trough at the deposit for unconventional resources in a bid to bolster production.

In 2019, the company, which operates China's biggest shale gas project in Chongqing, agreed to study shale oil potential in the Dongying trough at Shengli with Royal Dutch Shell.

The initial 458 million tonnes estimate for geological, or in-place reserves, is based on drilling results for four exploration wells.

The highest flow rate from these was 171 tonnes of shale oil per day - a record for a domestic shale oil well, Xinhua said, adding that the reserves were more than 3,000 meters deep.

Black crude extracted from that depth did not even flow out of a bottle when it was turned upside down, the report added.

Xinhua cited Yang Yong, chief expert in development geology at Sinopec Shengli Oil Field, as saying there is "no precedent for successful development of shale oil as thick as this in the world" and that a series of technological challenges need to be overcome.

According to preliminary calculations, shale oil resources in the Jiyang trough at Shengli amount to more than 4 billion tonnes, Xinhua said.

Sinopec rival China National Petroleum Corp (CNPC) said in August it aimed to produce 1 million tonnes of shale oil annually at its flagship Daqing in northeast China's Heilongjiang province by 2025.

(Reporting by Tom Daly, editing by Louise Heavens)

Categories: Shale Oil & Gas Asia Shale

Related Stories

QatarEnergy Signs 15-year LNG Supply Deal with Excelerate Energy

Jadestone Outlines Gas Sale Terms with PV Gas for Fields Offshore Vietnam

Seatrium Starts Fabrication of Shell's Sparta FPU

BP Launches Its ‘Largest-Ever’ Seismic Program at Azerbaijan Oil Field

Petronas Awards Seven New PSCs for Six Offshore Blocks in Malaysia

McDermott Scoops Contract for CCS Project Offshore Malaysia

Dyna-Mac Expands Fabrication Capacity with New Acquisition

Shell Restarts LNG Loadings from Prelude

Valeura Energy Concludes Infill Drilling Campaign offshore Thailand

China's Envision Energy Says 'Easy' to Triple Renewables

Current News

Three Questions: Matt Tremblay, VP, Global Offshore Markets, ABS

The APAC Offshore Market: Riding the Wave of Success into 2024 and Beyond

Woodside Sells 15.1% Scarborough Stake to JERA for $1.4B

Floating Production – A Growing Segment in Transition

Are North Sea Jack-Ups Set for Flat 2024?

ONE Guyana FPSO for ExxonMobil’s Yellowtail Field Leaves Drydock in Singapore

Equinor Pens 15-Year LNG Supply Deal with Indian Firm

Brassavola Completes Maiden Ship-to-Ship LNG Bunkering Operation

Marine Power R&D Insights: Matt Hart, Wabtec Corporation

Jadestone Eyes Woodside’s Macedon and Pyrenees Fields Offshore Australia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week