ECF China Shale Weekly Review - August 25, 2019
1. 80 wells are estimated to be put into operation at Guizhou Zheng'an Shale Block in 2028
According to a shale gas development plan released recently by Guizhou Wujiang New Energy Development Company, there will be totally 80 new wells being put into operation by 2018 with accumulated gas production at 5.3 bcm.
The Zheng'an shale gas exploration block is located in Zhengan County, Zunyi City, Guizhou Province, with a 59.1 km2 shale gas sweet-spot in Wufeng-Longmaxi Formation. 10 well platforms have been designed in the sweet-spot with a total deployment of 83 wells (63 wells in the Wufeng-Longmaxi Formation and 20 wells in the Shiniulan Formation). 12 pilot-oriented test wells will be implemented in Anye No. 1, No. 2 and No. 3 platforms in total (10 wells in the Wufeng-Longmaxi Formation and 2 wells in the Shiniulan Formation).
The project will complete in 2022 with 1 bcm annual production capacity. The single well output is estimated to be 6000 M3 per day average. Calculated based on the annual decline rate of 60%, 35%, 25%, 15% and 10%, stable production will keep 6 years with adopting a drilling replacement method. It is estimated that 80 wells will be put into production by 2028, and the accumulated gas production will reach 5.286 bcm. (ECF)
The cumulative production of crude oil in 2019 has exceeded 100,000 tons.
It marks the initial establishment of China's largest shale oil national demonstration base in Changqing Oilfield.
Changqing Oilfield started its tight oil (shale oil) development in September 9.
Technology & Development
All horizontal wells have been deployed in large well clusters. The average number of horizontal wells in a single platform has been increased from 1 to 2 in earlier period to 4 to 8 wells. Among them, 12 horizontal wells have been built on the Hua H6 platform, which becomes the largest horizontal well platform in China.
The shale oil project integrates and innovates the supporting technical system for shale oil development including integrated seismic logging reservoir sweet-spot prediction, a multi-disciplinary evaluation to improve oil layer drilling rate which effectively solve the problem of rapid lateral change of sand and strong vertical heterogeneity. The drilling rate in eastern and northern Shaanxi increased by 5% and 6%. The technology of large offset extended horizontal wells of efficient drilling and completion operations, innovative space arc segmentation design, optimized well structure, enhanced drilling parameters, etc have been applied. The drilling cycle in the demonstration area is shortened by 33%, refreshing China's shale oil development record.
Small-scale multi-cluster low-cost volume fracturing, which integrated "subdivided cutting + inter-cluster temporary blocking steering + low-cost recoverable fracturing fluid", optimized the number of clusters, liquid volume, sand volume, displacement, etc. , has a similar fracturing parameter compated with shale oil development in North America. In 2019, the number of average stage transformations in the wells is reduced by three, enabling the cost control of single well under the premise of ensuring the effect.（ECF）
China Huadian has reportedly handed back acreage that it won in China’s second shale gas exploration licensing round held in late 2012. (Interfax)