From October 19 to 25, Cheng Hongjie, Deputy Manager and Chief Geologist of the Luliang Oilfield Operations Area, led a delegation to Beijing to attend the 2026 Annual Review Meeting on Newly Added Oil and Gas Reserves organized by the Oil, Gas and New Energy Company.

At the meeting, both reserve reports submitted by the Operations Area successfully passed the review conducted by the PetroChina headquarters. The reports covered the Jurassic Sangonghe Formation oil reservoir in Block Xiayan 18 and the Cretaceous Houtubihe Formation in Block Shi 155. The two blocks recorded their highest combined newly added economically recoverable reserves from shallow and intermediate-depth reservoirs in nearly a decade, marking a major milestone in the Operations Area's 2026 reserves submission program.

Rolling exploration researchers delivered detailed presentations to the review experts, covering eight aspects, including the oilfield overview, reservoir geological characteristics, classification of calculation units, geological reserve estimation parameters, technically recoverable reserves, economically recoverable reserves, and proved reserves.

Company executives and PetroChina experts conducted an in-depth review of the details of reserve calculations. In response to questions raised by the experts, the research team provided additional explanations on hydrocarbon accumulation patterns in the proposed blocks, identification of minor faults, the occurrence of oil and water production simultaneously, development methods, and the supporting rationale for recovery factor estimates. The supplementary presentations received unanimous recognition from the attending executives and experts, and both reports successfully passed the review.

Since the commencement of the proved reserves calculation work, the rolling exploration team has faced multiple challenges, including limited personnel, several reserve blocks being evaluated simultaneously, tight deadlines, and heavy workloads. With the goal of achieving first-pass approval and high-quality results, researchers worked through multiple overnight sessions to address critical tasks such as reserve parameter fitting and preparation of geological maps and diagrams.

Throughout the process, Zhou Lihua, Senior Engineer of the Operations Area, and Zhang Yongbo, Party Branch Secretary and Deputy Director of the Geological Research Center, maintained strict quality control over data, technical standards, and project reviews. They repeatedly checked and verified reserve calculation methods, parameter selection, and graphical deliverables to ensure the accuracy and reliability of the results.

The economically recoverable proved reserves and SEC reserves submitted by the Operations Area both reached their highest levels in the past five years. Against a backdrop of mounting pressure to increase reserves and increasingly challenging resource replacement prospects, the Operations Area achieved an upward trend in both its SEC reserve replacement ratio and SEC reserves-to-production ratio.

Moving forward, the Luliang Oilfield Operations Area will revise and improve its reserve reports in accordance with the review comments, prepare for the subsequent review by the Ministry of Natural Resources, and accelerate exploration efforts to identify more high-quality, economically viable oil reservoirs, further strengthening its reserve base and production capacity.