Sinopec Announces Significant Oil and Gas Flows at Chongqing Shale Well

China's Sinopec Corp announced on Tuesday that it has encountered substantial oil and gas flows in a pivotal exploration shale well located in southwest China. The Xingye-9 well, situated in the Liangping area of Chongqing municipality, is positioned within the gas-rich Sichuan basin. Sinopec has revealed that the well exhibited a daily production of 108.15 cubic meters of oil and 15,800 cubic meters of gas during its testing phase.

According to a press release by the state oil and gas major, the Xingye-9 well holds the potential for the discovery of approximately 100 million metric tons of reserves. This successful drilling outcome is reminiscent of Sinopec's achievements in late 2021, when the company identified an initial 458 million tonnes (equivalent to 3.34 billion barrels) of shale oil reserves at the Jiyang trough of its Shengli field in the eastern Shandong province.

In recent years, China's national oil and gas producers have intensified their efforts in exploring challenging-to-extract shale oil and gas resources. This includes drilling to depths as profound as 12 kilometers (7.46 miles) beneath the surface, aiming to enhance domestic production capabilities.

Tuesday's announcement coincided with the revelation that China's crude oil production experienced growth last year, reaching 208 million metric tons or 4.16 million barrels per day. This represents an increase of 3 million metric tons compared to the previous year, reflecting a 1.6% growth over the 2022 figures.

Sinopec's achievements in the Chongqing shale well mark a significant stride in China's quest for energy security and self-sufficiency. The success of the Xingye-9 well adds to the strategic reserves of oil and gas in the gas-rich Sichuan basin. This emphasis on exploring unconventional energy sources aligns with broader global trends, where oil and gas companies are pushing boundaries to tap into resources previously deemed difficult to extract.

As China continues to bolster its domestic energy production, advancements in shale exploration play a crucial role in meeting the nation's growing energy demands. The positive results from the Xingye-9 well position Sinopec as a key player in the nation's efforts to secure a robust and sustainable energy future. The ongoing commitment to technological innovation and exploration in challenging terrains underscores China's determination to diversify its energy mix and reduce dependency on external sources.

Sinopec's announcement of substantial oil and gas flows in the Chongqing shale well reflects a promising development in China's energy landscape. The successful exploration efforts contribute to the nation's strategic reserves and exemplify the industry's dedication to pushing the boundaries of conventional drilling to secure energy resources for the future.