Sinopec says east China shale oil field pumping at 1,600 tons a day

Reuters
16 Oct 2024

SINGAPORE, Oct 16 (Reuters) - Sinopec is advancing development of shale oil at its pilot project Jiyang in east China, pumping 1,600 metric tons per day now, up from 100 tons in 2021, the state oil and gas group said on Wednesday.

At this rate, Sinopec is on track to deliver a target set in 2022 to produce 500,000 tons a year in 2025 at Jiyang, which is situated mostly in Shandong province and covers 7,300 sq km (1.8 million acres).

Following a call from the central government to boost domestic energy security, China's national oil companies are making greater efforts to tap hard-to-extract shale deposits to help compensate for older, fast-depleting conventional oilfields.

Currently Jiyang has 36 wells that each pump more than 100 tons a day, with the Fengye 1-1HF well having the highest daily output of 262.8 tons, Sinopec said.

The Jiyang shale oil zone, part of the ageing conventional Shengli oilfield, has an estimated shale oil resource of 10.5 billion tons, of which 1.73 billion tons have been identified as prospective reserves, Sinopec said.

Despite the huge resource size, shale oil remains among the geologically most challenging and costly types of oil to explore and produce, with output making up only 1% of China's total crude oil production.

(Reporting by Chen Aizhu; Editing by Jamie Freed)

((aizhu.chen@thomsonreuters.com; Reuters Messaging: aizhu.chen.reuters.com@reuters.net))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10