-Producing 171 tons of shale oil daily, the Fanye-1 Well sets China's highest 
production record for a single shale oil well. 
-1 million tons of shale oil production capacity expected to be built in the 
next five years. 
-Initial estimates of shale oil resources in the region amount to 4 billion 
tons.

The four designated shale oil prospecting wells in the East Exploratory Area of 
Shengli Oilfield of China Petroleum & Chemical Corporation (HKG: 0386, 
"Sinopec") reported high oil flow on November 3, among which the Fanye-1 Well 
achieved peak daily oil production of 171 tons, setting the highest shale oil 
production record of a single well in China.

A strategic breakthrough in shale oil exploration in Shengli Oilfield, the 
record-breaking achievement has exhibited the area's bright prospects for shale 
oil exploration and development. Shengli Oilfield has reported the first batch 
of shale oil geological reserves to reach 458 million tons by current 
predictions. Preliminary estimates have shown that shale oil resources in the 
region amount to more than 4 billion tons marking a practically new territory 
for increasing reserves and production in eastern China.

Shale oil is the petroleum resource stored in the micro/nano-sized pores of 
shale layers. The shale oil developed in Shengli Oilfield is at a depth of over 
3,000 meters at a temperature reaching 170 degrees Celsius in a storage space 
that's finer than a hair. The low degree of geological evolution, high density, 
poor fluidity and difficult development scenario have challenged techniques 
including drilling and fracturing.

To solve problems in shale oil exploration and development, Shengli Oilfield 
has innovated three major technologies to break through the bottlenecks. It has 
carried out more than 40 types of shale oil research at various levels, 
including the National Basic Research Program of China (973 Program) and major 
special projects, in the past decade such as:

-Establishing a shale oil accumulation and enrichment model in continental 
faulted basins to develop shale oil optimization evaluation technology that 
uncovers the "hiding places" of shale oil; 
-Developing high-quality fast drilling technology with synthetic-based drilling 
fluids to enable efficient drilling of horizontal wells of over 2,000 meters at 
depths below 3,300 meters; 
-Accomplishing multi-scale combined network fracturing technology that allows 
shale oil to discharge on hundreds of artificially manufactured 
millimeter-level "highways".

At the moment, Shengli Oilfield is fully equipped for the comprehensive 
exploration and development of shale oil. The company is working on 
technologies for longer horizontal sections, multi-layer and three-dimensional 
development, innovatively applying the "well factory" model to speed up the 
establishment of a national-level shale oil development pioneering zone in the 
Jiyang continental fault basin.

"The next step for Sinopec Shengli Oilfield is to continue conducting in-depth 
research and improving engineering capabilities to support the increase of 
large-scale shale oil reserve and production. It's expected shale oil 
production capacity reaching 1 million tons will be built in the next five 
years, consolidating production yield and energy security resilience in China," 
noted Kong Fanqun, Assistant to the President of Sinopec and Executive Director 
of Sinopec Shengli Oilfield.

Sinopec has also reported major breakthroughs in the field of shale gas 
exploration, including the establishment of China's first large-scale shale gas 
field, the Fuling shale gas 
field<https://en.prnasia.com/releases/apac/sinopec-fuling-shale-gas-field-sets-n
ew-cumulative-production-record-of-40-billion-cubic-meters-335734.shtml>; the 
discovery of China's first deep shale gas field, the Weirong shale gas field, 
the first phase of which has built a production capacity of 1 billion cubic 
meters in 2020; as well as the Dongye Deep 2 key shale gas prospecting well in 
Sichuan Basin that has been tested to produce 412,000 cubic meters of 
high-quality shale gas daily and marked significant achievement in the 
exploration of ultradeep shale gas at a depth of over 4,000 meters.

For more information, please visit Sinopec<http://www.sinopec.com/listco/en/>. 

SOURCE  SINOPEC

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   Link: https://iop.asianetnews.net/view-attachment?attach-id=406365

   Caption: Sinopec Exploits Shale Oil in Shengli Oilfield with Estimated 
Reserves of 458 Million Tons.