PetroChina, Sinopec Deepen Shale Cooperation

On December 3, a PetroChina Southwest Oil & Gasfield delegation led by Li Hai visited Sinopec Southwest’s Shale Gas Project Department for technical and management exchanges. Sinopec reviewed its shale oil and gas exploration and development history, organization, and the opportunities and challenges of boosting reserves and output in the Qiongzhusi Formation. It shared measures for wellbore design optimization, drilling process improvements, and fracturing upgrades under complex geology, alongside cost-reduction and efficiency practices, including its “Three Ones” project management concept and incentive mechanisms. The two sides discussed current well engineering difficulties and solutions. Li raised 23 questions and called for summarizing lessons, unifying key management standards, and expanding sustained cooperation.

Dagang Unlocks Tight Oil Reserves

Dagang Oilfield has achieved a breakthrough in developing hard-to-produce “low–ultra-low permeability” reserves at the Nangang Oilfield. Eight pilot wells have maintained stable production for over two months, delivering 190 tonnes of oil and 190,000 cubic meters of gas per day. As the first newly built and commissioned large-scale development block in three years, the project is expected to add 15,000 tonnes of crude oil and over 20 million cubic meters of gas annually. By replacing the traditional vertical-well model with a combination of horizontal wells, volumetric fracturing, and enhanced huff-and-puff techniques, Dagang successfully activated deep, tight reservoirs and established a replicable pathway for efficient development of similar resources.

Sinopec Discovers New Hydrocarbon System

Sinopec’s high-risk exploration well Da-4, located on the southeastern margin of the Junggar Basin, has achieved industrial oil and gas flows, marking the first discovery of a new petroleum system in the area. The well recorded peak daily production of 24.12 cubic meters of oil and 6,125 cubic meters of gas. After decades of limited success in the Chaiwopu Sag, researchers re-evaluated basin evolution and near-source exploration potential, leading to the deployment of Da-4 in 2022. Despite initial setbacks, deeper drilling confirmed hydrocarbon source rocks and thick reservoirs, demonstrating strong exploration potential and opening a new reserve replacement zone.