PR92817

BEIJING, Nov. 3, 2021 /PRNewswire=KYODO JBN/ --

-Producing 171 tons of shale oil daily, the Fanye-1 Well sets China's highest

production record for a single shale oil well.

-1 million tons of shale oil production capacity expected to be built in the

next five years.

-Initial estimates of shale oil resources in the region amount to 4 billion

tons.

The four designated shale oil prospecting wells in the East Exploratory Area of

Shengli Oilfield of China Petroleum & Chemical Corporation (HKG: 0386,

"Sinopec") reported high oil flow on November 3, among which the Fanye-1 Well

achieved peak daily oil production of 171 tons, setting the highest shale oil

production record of a single well in China.

A strategic breakthrough in shale oil exploration in Shengli Oilfield, the

record-breaking achievement has exhibited the area's bright prospects for shale

oil exploration and development. Shengli Oilfield has reported the first batch

of shale oil geological reserves to reach 458 million tons by current

predictions. Preliminary estimates have shown that shale oil resources in the

region amount to more than 4 billion tons marking a practically new territory

for increasing reserves and production in eastern China.

Shale oil is the petroleum resource stored in the micro/nano-sized pores of

shale layers. The shale oil developed in Shengli Oilfield is at a depth of over

3,000 meters at a temperature reaching 170 degrees Celsius in a storage space

that's finer than a hair. The low degree of geological evolution, high density,

poor fluidity and difficult development scenario have challenged techniques

including drilling and fracturing.

To solve problems in shale oil exploration and development, Shengli Oilfield

has innovated three major technologies to break through the bottlenecks. It has

carried out more than 40 types of shale oil research at various levels,

including the National Basic Research Program of China (973 Program) and major

special projects, in the past decade such as:

-Establishing a shale oil accumulation and enrichment model in continental

faulted basins to develop shale oil optimization evaluation technology that

uncovers the "hiding places" of shale oil;

-Developing high-quality fast drilling technology with synthetic-based drilling

fluids to enable efficient drilling of horizontal wells of over 2,000 meters at

depths below 3,300 meters;

-Accomplishing multi-scale combined network fracturing technology that allows

shale oil to discharge on hundreds of artificially manufactured

millimeter-level "highways".

At the moment, Shengli Oilfield is fully equipped for the comprehensive

exploration and development of shale oil. The company is working on

technologies for longer horizontal sections, multi-layer and three-dimensional

development, innovatively applying the "well factory" model to speed up the

establishment of a national-level shale oil development pioneering zone in the

Jiyang continental fault basin.

"The next step for Sinopec Shengli Oilfield is to continue conducting in-depth

research and improving engineering capabilities to support the increase of

large-scale shale oil reserve and production. It's expected shale oil

production capacity reaching 1 million tons will be built in the next five

years, consolidating production yield and energy security resilience in China,"

noted Kong Fanqun, Assistant to the President of Sinopec and Executive Director

of Sinopec Shengli Oilfield.

Sinopec has also reported major breakthroughs in the field of shale gas

exploration, including the establishment of China's first large-scale shale gas

field, the Fuling shale gas

field<https://en.prnasia.com/releases/apac/sinopec-fuling-shale-gas-field-sets-n

ew-cumulative-production-record-of-40-billion-cubic-meters-335734.shtml>; the

discovery of China's first deep shale gas field, the Weirong shale gas field,

the first phase of which has built a production capacity of 1 billion cubic

meters in 2020; as well as the Dongye Deep 2 key shale gas prospecting well in

Sichuan Basin that has been tested to produce 412,000 cubic meters of

high-quality shale gas daily and marked significant achievement in the

exploration of ultradeep shale gas at a depth of over 4,000 meters.

For more information, please visit Sinopec<http://www.sinopec.com/listco/en/>.

SOURCE  SINOPEC

Image Attachments Links:

   Link: http://asianetnews.net/view-attachment?attach-id=406365

   Caption: Sinopec Exploits Shale Oil in Shengli Oilfield with Estimated Reserves of 458

Million Tons.