PetroChina has discovered a large shale oil field at the Gulong site in the Daqing field in the Songliao Basin in northern China with reserves exceeding 1 billion tons.
PetroChina Company Limited is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation (CNPC), headquartered in Dongcheng District, Beijing. The company is currently Asia’s largest oil and gas producer and was China’s second biggest oil producer in 2006. Traded in Hong Kong and New York, the mainland enterprise announced its plans to issue stock in Shanghai in November 2007, and subsequently entered the constituent of SSE 50 Index. In the 2020 Forbes Global 2000, PetroChina was ranked as the 32nd-largest public company in the world.
The company confirmed the availability of 1.2 billion tons of oil (9.3 billion barrels). The Company has completed 58 wells out of 100 planned for this year on a plot of 1,413 sq. km. Of these, 27 have been tested, 25 contain hydrocarbons and 17 contain shale oil of commercial value.
PetroChina said that it would continue drilling additional exploration and evaluation wells over the next five years with the aim of identifying another 1 billion tons of oil at the Gulong field by 2025, when the company plans to establish an annual production capacity of 1 million tons of shale oil.
Also, the Chinese state oil and gas corporation CNOOC has already started production ahead of schedule from the Luda 6-2 oil field on the shelf of eastern China. This was reported on August 23 in the press service of the company.
The complex is located in the Liaodong Bay area of the Bohai Sea, at a depth of about 30 m. The newly built Luda 6-2 platform is connected to the processing facilities serving the Suizhong 36-1 oil field. CNOOC plans to drill 38 production wells.
According to preliminary estimates, the flow rate will be about 10 thousand barrels/day of crude oil in 2022. Deposits in the disputed territory in the water area of the South China Sea also are being actively put into operation.
China continues to develop its economy, including the domestic market and international trade. The Chinese economy overcame the consequences of the pandemic faster than other countries, and in the 1st quarter of 2021, taking into account the failure of the first months of last year, showed an impressive GDP growth rate of +18.3%. However, then the economy moved from a V-shaped recovery to stabilization, and now a number of indicators show a slowdown in its growth.
As part of the strategy to maintain long-term economic growth at the level of at least 6% of GDP per year, the issues of ensuring stable energy supplies at projected prices fixed in long-term contracts are becoming particularly relevant.
In January-July 2021 oil and gas production were significantly increased in the country.
The State Statistical Office of China (GSU) reported that in January-July 2021 oil production in the country was increased by 2.4% (to 116.21 million tons) compared to the same period in 2020. In July, oil production was increased by 2.5% and reached 16.87 million tons (the average daily volume of oil production was at the level of 544 thousand tons). Compared to July 2019, the indicator increased by 3.1%.
At the same time, oil imports to China for the first 7 months of 2021 decreased by 5.6% in annual terms-to 301.83 million tons. In July, the indicator fell by 19.6%, to 41.24 million tons.
Natural gas production in China in January-July was increased by 10.7% compared to the same period in 2020. The indicator reached 120.2 billion m3. In July, gas production was increased by 9.8% compared to 2020, to 15.8 billion m3. In July 2021, natural gas import was increased by 27% and reached 9.34 million tons, mainly from Russia.
Simultaneously, with the approach of the autumn-winter season, the gas market once again surprises with anomalies – spot gas prices in Europe went beyond the upper limit of the so-called “price envelope” by +17%.
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