Xinjiang Boosts Oil, Gas Exploration

On January 19, the Xinjiang Department of Natural Resources and the Xinjiang Base of Huairou Laboratory held a seminar to advance oil and gas exploration, signing a cooperation memorandum to establish a long-term partnership. The two sides will share data, technologies, and research, focusing on mineral-rights blank areas to achieve major exploration breakthroughs. Xinjiang holds China’s richest onshore oil and gas resources, accounting for 22% and 28% of national predicted reserves. In 2026, government funding will prioritize key basins, with Huairou Laboratory providing expert support to ensure high-quality exploration and strengthen national energy security.

PetroChina Wins Shanxi CBM Block

On January 20, 2026, after seven hours of bidding, PetroChina secured the Guxian coalbed methane (CBM) exploration block in Shanxi’s Qinshui Basin for 559 million yuan. This marked the fourth CBM block auctioned by Shanxi since September 2025 and completed the recent entry of China’s three major national oil companies into the province’s CBM sector. The Guxian block covers nearly 292 square kilometers and reflects strong market confidence in Shanxi’s CBM potential. The deal further consolidates PetroChina’s long-term in Shanxi and supports the province’s goal of scaling up CBM production and ensuring stable development of the industry.

Zhundong Targets Million-Ton Goal

In 2026, marking the start of China’s 15th Five-Year Plan, Zhundong Oil Production Plant enters a critical year toward building a modern million-ton integrated energy operation. Facing shrinking exploration space, aging oilfields, and rising costs, the plant has launched three major campaigns centered on survival, breakthrough, and future development. Guided by the “1345” strategy, it focuses on unlocking the Fukang fault zone’s oil potential, achieving unconventional gas breakthroughs at the Baijiahai uplift, and advancing enhanced recovery technologies in mature fields. Through technological innovation, cost reduction, and green transformation, Zhundong aims to secure sustainable growth and support Xinjiang Oilfield’s high-quality development.