Summary of China Petroleum's efforts to increase domestic oil and gas exploration and development

China's domestic upstream exploration and development "Spring offensive" is rapid and efficient: Gaoshen 1 well achieved a major breakthrough in the combined exploration of the southern margin of the Junggar Basin, expanding the new areas of increased reserves and production; the implementation of the formation of billion tons of shale in the Kanto region of the Bohai Bay Basin The oil storage battlefield has achieved a major breakthrough in the development of China's continental shale oil industrialization; the daily production of the Daping 7 well in Huabei Oilfield has exceeded 10,000 cubic meters, and significant progress has been made in the exploration of deep and medium coal rank coalbed methane, filling the world's coalbed methane with a depth of 1800 meters. Mining gap; domestic oil and gas production growth is strong, domestic crude oil output increased by 1.34% in February, natural gas production increased by 8.34%, and continued to grow for two consecutive months... This is only the staged result of PetroChina's efforts to increase domestic exploration and development. .

Since July last year, PetroChina has resolutely implemented the spirit of the important instructor of the internship, Mr. Jinping, from top-level design, planning, and task decomposition, from headquarters to grassroots enterprises, from the east to the west, from conventional resources to unconventional. Resources, the company's efforts to seek truth, innovation, and effectiveness.

Fast action - scientific decision making is fully promoted

This is a tough battle that must be won and won. It requires scientific decision-making and command, and it needs to be promoted.

After General Secretary Xi Jinping made important instructions, the party group of the group company quickly convened two enlarged meetings to study and implement the spirit of instruction, study measures to enhance domestic oil and gas exploration and development, and discuss "the plan for accelerated development of domestic exploration and production" to mobilize millions of oil. People are united in their efforts, resolutely fight to win the exploration and development offensive war, and strive to ensure national energy security. At the meeting of the group leading cadres that followed, PetroChina clearly proposed to fight the "four key battles" of winning the offensive war of exploration and development, and further advanced the exploration and development offensive war as the primary battle.

On the basis of many discussions and repeated argumentation, combined with the actual development of various oil and gas fields and resource potential, PetroChina completed the “2019-2025 Domestic Exploration and Production Accelerated Development Planning Plan”. The program closely focuses on the requirements of vigorously improving exploration and development, adheres to the principle of steady development, and follows the strategic layout of “deepening the east, developing the west, expanding the sea, paying equal attention to oil and gas, standing on the ground, and strengthening unconventional”, from investment planning and resource discovery. Detailed deployments at various levels, such as oil and gas production, reform and innovation, and service guarantee, will activate the new generation of new resources.

It is more urgent to call for oil and technology to speed up the improvement of engineering and technical service business. Focusing on exploration and development and deployment, in response to the shortage of engineering technical service equipment, PetroChina has developed a fracturing service and a rig guarantee program, strengthened resource allocation and optimized the rig configuration at home and abroad. At the same time, it is proposed to use lean management to effectively guarantee the production of key oil and gas areas, update equipment resources as soon as possible, adhere to the management technology road, take advantage of the new system, coordinate and share, reduce waste, improve efficiency, and implement total outsourcing. To form a dual advantage of scale efficiency and comprehensively enhance service support capabilities.

To crack down on the exploration and development offensive, it is necessary to continuously improve the technological content. PetroChina further extended its scientific research front to the first line, and established research centers such as the Sichuan Basin, the Junggar Basin, the Tarim Basin, and the Ordos Basin, and sent more than 300 researchers close to the production line to solve the problem. Enhance recovery to bring new technologies, new ideas and new products.

Seeing results - super-conventional initiatives

"We must stand on the strategic height of safeguarding the national oil and gas supply security, resolutely fight to win the exploration and development offensive, and fundamentally curb the rapid growth of foreign dependence." Facing the new situation, new tasks and new missions, the party secretary and chairman of the group company Wang Yilin issued a call to all cadres and employees.

The million-strong oil army responded positively and vowed to fight and win the exploration and development offensive!

To achieve stable production and production of oil and gas, it is the basis for “thick” reserves “home”. Faced with the increasingly complex oil and gas exploration targets, the increasing difficulty of discovery, and the rising cost of exploration engineering, China Petroleum has highlighted high-efficiency exploration, implemented concentrated exploration, deepened fine exploration, strengthened risk exploration, and increased comprehensive exploration of unconventional resources. The proven oil and gas reserves have exceeded 1 billion tons for 13 consecutive years. Among them, risk exploration is the starting point, and a number of risk exploration wells such as Zhongqiu 1 Well, Gaoshen 1 Well, Yongshao 1 Well and Shashen 1 Well have made major breakthroughs in key basins such as Tarim, Junggar and Sichuan, and expanded the reserves. Production in new areas.

In the past year, oil and gas exploration has not only found enough “quantity”, but also improved “quality”. It is also newly added to identify 1 billion tons of oil and gas equivalents. The proportion of high-quality, large-scale and whole-package reserves has increased significantly. The newly-added oil and gas reserves are characterized by high implementation, availability and scalability. The new crude oil proven reserves penetration rate is less than 1 millidarcy, which is the least in the past three years, which is 9 percentage points lower than the 2016 peak of the 13th Five-Year Plan. The quality has improved, which has strengthened the resource base for the next benefit construction. .

In order to further revitalize the mining rights block and unutilized reserve assets and activate the exploration and development market, PetroChina actively broke the pattern of “painting the land for prison” and promoted the internal circulation of the first batch of mining rights, achieving remarkable results in only one year. Huabei Oilfield has obtained high-yield oil flow in multiple exploration wells in Bayanhetao Basin, and a new fixed oilfield with a predicted reserve of over 100 million tons, Jilantai Oilfield, was born.

In terms of oil and gas production, PetroChina has faced the challenges of developing oil and gas fields into the middle and late stages of development, and the efficiency of production and construction has declined. Crude oil production has two main lines of control reduction and enhanced oil recovery, and has continued to promote special treatment of oilfield water injection, long-stop control, and major Effective measures such as the development of experiments have achieved an effective production of more than 100 million tons of crude oil. The natural decline rate and the comprehensive decline rate have slowed by 0.41% and 0.72% respectively from the previous year, and the stable production base has been steadily consolidated.

Natural gas development has accelerated the pace of the old gas field optimization and the new gas field to evaluate the pace of production, and has effectively built 10 scale gas fields of more than 2 billion cubic meters including Longwang Temple, Sulig, Keshen and Changning. In 2018, natural gas production reached a new high at the new starting point of 100 billion cubic meters, an increase of 5.9% over the previous year. Among them, shale gas production was 4.26 billion cubic meters, an increase of 41.2%. Chuanan has become the largest production base of shale gas in China, with a daily output exceeding 20 million cubic meters.

A series of effective deployments, a series of unconventional measures, become a powerful engine for increasing reserves and production, and inspiring millions of oil people to fight the strength of the exploration and development offensive.

Look at the future - strong deployments in place

It is stable and far-reaching. It is not a temporary policy to increase the intensity of exploration and development. The increase in reserves and production needs to be carried out, and it can be stabilized and traveled far.

To this end, PetroChina has formulated a series of safeguard measures to ensure that it will be effective every year and produce results every year.

High investment, high risk and high return are the three basic attributes of oil and gas exploration and development, and input is a prerequisite for return. PetroChina has already clarified the upstream investment plan for 2019-2025, which is a significant increase from the previous two years of the 12th Five-Year Plan and the 13th Five-Year Plan. This year, the domestic exploration and development investment operation plan increased by 25% year-on-year, of which the risk exploration investment increased from 1 billion yuan to 5 billion yuan, and continued to improve the incentives for increasing investment and production, and increased the acquisition of oil and gas exploration, oil and gas production overproduction units. And personal rewards.

In the case of further difficulty in upgrading the production of oil and gas, it is only by standing at a higher starting point to plan and promote reform and innovation that we can rush out of the new “acceleration” of exploration and development. This year, PetroChina launched a second batch of mining rights transfer, and the block area and output both doubled compared with the first round, accelerating the exploration and development of unutilized reserves and difficult-to-use reserves. At the same time, it is clear that it is necessary to expand the scope of risk operations of unlisted enterprises, strengthen joint ventures and cooperation with local enterprises, accelerate the pace of increase in production and achieve mutual benefits and win-win results. In addition, through the full implementation of engineering technology services and price marketization, we will further deepen the reform of enterprises to expand their autonomy and enhance the vitality of enterprises to increase their production and power.

In terms of strengthening technological innovation drive, PetroChina focuses on key issues such as slowing down in the east and accelerating production in the west. It relies on the technological revolution to implement new developments and quickly overcome a number of key technologies with strategic and revolutionary significance. Aiming at new resource types, we will lead the independent research and development and experimentation of disruptive technologies to further release the potential of resources and promote the transformation of oil and gas supply.

The increase in reserves and production is inseparable from the strong guarantee of engineering and technical services. This year, PetroChina's new oil and gas production capacity will increase by 60% compared with last year, drilling drilling footage will increase by more than 20%, risk exploration wells and horizontal wells will increase exponentially, engineering technology business service guarantee time is tight, tasks are heavy, requirements are high, and service guarantee work faces Severe test. In this regard, China's oil and gas field enterprises and engineering technology service enterprises give full play to the advantages of integration and cooperation, jointly promote technology, management mode, equipment upgrades, comprehensive quality improvement and speed up efficiency.

Of course, to promote the long-term stable growth of oil and gas production, we must be aggressive, rational and pragmatic, and find the best balance between quantity, efficiency and sustainability. The leaders of the group company repeatedly stressed that on the one hand, we must further enhance the sense of responsibility and urgency to increase the intensity of work, and resolutely fight to win the offensive battle of exploration and development; on the other hand, we must base ourselves on the long-term, rationally grasp the rhythm of work, and insist on everything from In actual practice, we respect the law of oil and gas exploration and development. While continuing to promote oil and gas production, we will force the “Great Leap Forward” and force the “roller coaster”.

People Qin Chun came early, and the endeavor was right. The efforts to increase domestic exploration and development have been clear, the direction has been set, and the road has been clear. The oil people must make millions of points of confidence and hard work, and for a long time, they will work together to make new contributions to safeguarding national energy security.

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