New State Body Set Up in China for Deep Oil and Gas Reserves Drilling

Monday, July 1, 2024

China is setting up a new entity that groups national oil producers and other state firms to search for ultra-deep oil and gas reserves and tackle harder-to-extract non-conventional resources, state energy group CNPC said on Monday.

This is in answer to President Xi Jinping's call for the sector to have "new productive forces" that will contribute to the country's energy security, CNPC said on its website.

In addition to CNPC and Sinopec, the country's two dominant producers of oil and gas, the new body gathers seven other state groups including China Aerospace Science and Industry Corp, steel group Baowu, equipment builder Sinomach, Dongfang Electric Group and Minmetals.

"This...is to gather wisdom and strength to jointly build an industry chain from ultra-deep oil and gas exploration to development to engineering," CNPC said.

The group will drill conventional resources at ultra-deep wells that extend as much as 10,000 meters (6.21 miles) below the surface in places like northwest Xinjiang's Tarim basin region where CNPC and Sinopec are major players. It will also seek to tap deep shale oil and coal-seam gas resources.

China is the world's largest crude oil importer and relies on imports for nearly three-quarters of its needs. It has been investing billions of dollars to maintain its domestic crude oil production at above 4 million barrels a day, a level seen as necessary to power manufacturing activities and military services.

Years of effort by state oil majors to drill deeper onshore and accelerate development at offshore oilfields have yielded output growth of 2% per year since 2018.

That said, state firms have to contend with declining output at large mature fields. They are also grappling with the geological and cost challenges of extracting shale oil and gas resources.


(Reuters - Reporting by Chen Aizhu; Editing by Edwina Gibbs)

Categories: Drilling Industry News Activity Asia Oil and Gas

Related Stories

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Fugro Lands Deepwater Gas Field Job in Southeast Asia

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

ABS Greenlights SHI’s Multi-Purpose Deepwater LNG Floating Unit

Indonesia's Medco Starts Production at Natuna Sea Fields

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Eneos Scoops Jack-Up Drilling Contract Offshore Vietnam

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Current News

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

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