ECF China Shale Weekly Review - November 10, 2019
1. China encourages new oil & gas industrial structures to shale oil and tight oil
China's National Development and Reform Commission released "Industrial Structure Adjustment Guidance Catalogue (2019)" on October 30, adding shale oil, tight oil, hydrogen energy, LNG refilling infrastractures to its “encouraging” industry catalogue.The 2019 edition will be implemented on Jan 1, 2020. In 2005, with the approval of the State Council, the National Development and Reform Commission issued the Catalogue (2005). The Catalogue was revised in 2011 and 2013. The implementation of the Catalogue played an important role in strengthening and improving macroeconomic regulation and control, guiding the direction of social investment, and promoting industrial restructuring and optimization. （ECF）
2. China Hunan established technical regulations for shale gas well logging
The “Shale Gas Well Logging Technical Regulations” project of Hunan Coal Geological Exploration Institute successfully passed review organized by Hunan Provincial Market Supervision Administration and Hunan Provincial Natural Resources Department, filling the blank of shale gas logging standards in Hunan Province.
The project was successfully established in March 2017 and is a soft science research project of the Natural Resources Department of Hunan Province. The work cycle is from March 2017 to December 2018. The purpose is mainly to refer to the logging standards of coal mines, coalbed methane and petroleum industr, combining with the research results and logging practices of shale gas exploration and development in Hunan Province Coal Geological Exploration Institute, analyzing the shale gas logging technical parameters applicable to the regional geological features of Hunan, and standardizing shale gas logging operations, procedures and requirements.
It is reported that Hunan's shale gas resources are abundant and widely distributed. The shale gas resources amount to 9.2 trillion cubic meters, accounting for 7% of the country's total resources, ranking 6th in the country. The release of this standard will form a local standard series system for shale gas seismic, drilling, cementing and logging procedures in Hunan Province. （ECF）
3. Zhejiang Oilfield's CBM development plan passed MNR review
On October 24th, the two projects “CBM Development in Junlian YSL1 Well Zone in Southern Sichuan Area” and “CBM Development in Junlian YSL15 Well Zone in Southern Sichuan Area” reported by Zhejiang Oilfield Company passed the national review in Beijing.
This review is organized by the Ministry of Natural Resources. The development and utilization plan of coalbed methane mining project in Junlian YSL1 and YSL15 well zone reported by Zhejiang Oilfield was generally recognized by the participating experts. After strict evaluation by the expert group, it was agreed that the CBM resources Junlian were highly implemented and geological characteristics were studied solidly and reliably. The programming is in line with industry norms, so that the mining rights of the Junlian CBM field are finally approved.
In the next step, Zhejiang Oilfield will increase the efforts of “integration of exploration and development” and “integration of geological engineering” to ensure the development of CBM and natural gas in southern Sichuan. （ECF）4. CGS made significant progress in shale gas investigation in the western margin of the Xuefeng Mountains in China
Recently, the Institute of Karst Geology and the Chengdu Geological Survey Center of the China Geological Survey of the Ministry of Natural Resources conducted a joint investigation on the oil and gas geology of the western Xuefeng Mountain, and the Guidudi 1 well deployed in the Duyun area of Guizhou was drilled to the target Cambrian layer. Natural gas and shale gas were discovered in the Jiumenchong-Niuxitang Group while asphalt was found in the Dengying Group.
The on-site gas testing of the Jiumenchong Group and the Niutitang Group of the Cambrian layer showed a total of 8 anomalies, of which the relatively good shale gas reservoirs were found in the 1131.5-1245 m depth of the Niutitang Group. The on-site analytical gas content is 0.71-0.81 cubic meters / ton (excluding loss gas and residual gas). The water intrusion test foaming is severe. The core analysis gas was successfully ignited. The gas component analysis finds that the methane content was about 50%. The discovery of conventional and unconventional oil and gas in the Cambrian section pushed the gas-bearing range of the western margin of Xuefeng Mountain to the south for about 30 kilometers, expanding the favorable shale gas investigation area of the Xuefeng Mountain.
In the next step, the working group will re-evaluate the potential of the Sinian-Cambrian oil and gas resources in the western margin of Xuefeng Mountains based on the latest developments in oil and gas investigations, evaluate the favorable favorable areas, and propose a work plan for the Sinian-Cambrian oil and gas exploration in order to achieve a further breakthrough in the area. （ECF）
5. Sinopec Oilfield Service' Unit To Supply Shale Gas Drilling Equipment To Saudi Aramco For $400 Mln
According to the announcement of the newly signed overseas contract of the board of directors of Sinopec Petroleum Engineering Technology Service Co., Ltd. on November 4, recently, the company's wholly-owned subsidiary Sinopec International Petroleum Engineering Co., Ltd. and Saudi Aramco signed a supply contract for six sets of unconventional gas well drilling rig contract. The contract model is a daily fee system that will last four years with total contract amount of 400 million US dollars. （ECF）
Disclaimer: The above content was edited by Energy China Forum (www.energychinaforum.com), please contact ECF before reproduce.
Author:Jeffrey News Time:2019-11-11
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