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

Current News

After Sakhalin-2 Russia to Take Sakhalin-1 Project Under Its Control

Hellenic Cables to Deliver Inter-array Cables for Hai Long 2 & 3 Offshore Wind Farms in Taiwan

'Energy Major' Buys 1,2 GW Floating Wind Farm Project from Hexicon Korea

Perdana to Provide AHTS Services to Petronas Carigali

OPEC's Secretary-General Barkindo Dies, Nigerian Oil Official Says

Shell Joins Qatar's LNG Expansion Mega-Project

Russia's Medvedev Says Oil Could Hit Up to $400 a Barrel if Japanese Proposal Adopted

Dragon Oil Extends Turkmenistan Production Partnership in $1B Deal

More Than Two Dozen Missing after Ship Snaps in Two, Sinks Off Hong Kong

Russia's Control of Sakhalin Project Could Pose Upside Risk to LNG Prices

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

https://accounts.newwavemedia.com