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Joint E & P Blocks in China

As authorized by the Chinese government, CNPC works with international partners to explore and develop oil and gas resources in China. Most of the joint projects concern low-permeability reservoirs, heavy oil, tidal and shallow water zones, sour gas, high-temperature and high-pressure gas reservoirs, CBM and shale gas. The joint blocks and projects are mainly located in the Daqing, Jilin, Liaohe, Dagang, Changqing, Southwest and Xinjiang oil and gas fields.

By the end of 2018, we had 34 joint E&P projects in operation, producing 2.39 million tons of crude oil and 9.7 billion cubic meters of natural gas, which totaled 10.12 million tons of oil equivalent.

Main Projects

Changbei Project

Changbei Block,part of Changqing Oilfield in the Ordos Basin, covers an area of 1,691 square kilometers in the Ordos Basin and operates under an agreement with Shell Group since September 23, 1999. On January 1, 2016, CNPC took over the operatorship pursuant to a handover agreement.

In 2017, the project produced 3.7 billion cubic meters of natural gas, sustaining a stable production of over 3.3 billion cubic meters for nine consecutive years, and delivered 3.6 billion cubic meters to market, with its commercial gas sales totaling 40.8 billion cubic meters on a cumulative basis by the end of 2017.

Zhaodong Project

Zhaodong Block is located in the tidal and shallow water zone of the Bohai Bay Basin, covering an area of 77 square kilometers. New XCL-China LLC. and Australia's ROC Oil (Bohai) Company are our partners. In February 1993, China National Oil & Gas Exploration and Development Corporation (CNODC), a subsidiary of CNPC, signed an oil contract on Zhaodong Block with XCL, with the contract term of 30 years including the evaluation, development and production periods.

In April 2015, CNPC took over the Zhaodong Block operatorship. In 2017, the project continued to maintain stable and safe operation, producing 480,000 tons of crude oil. Three new wells were completed and two yielded more than 300 tons per day duringwell testing. The Zhaodong Oil Project, with New XCL-China and Australia's ROC Oil as our partners, is set to drill at least 24 wells within two years under an extension agreement in 2018.

Chuandongbei Project

On December 18, 2007, CNPC and Chevron signed a production sharing contract in Beijing on the joint development of Chuandongbei natural gas resources in southwestern China's Sichuan Province.

The Chuandongbei block is by far our largest onshore joint project. Covering 876 square kilometers in Sichuan Province and Chongqing Municipality, the project was formally launched in April 2008, and entered into development stage in 2009. 

On August 5, 2010, the overall development of Luojiazhai gas field was launched. By the end of 2014, main bodies of well group A, the purification plant and the sulfur plant of the Chuandongbei project had been completed. Well group A was smoothly put into production on December 30, 2015. The first train achieved its first gas on January 25, 2016, and the first stage development of Chuangdongbei Project was completed as the second and third trains were put into production respectively on April 7 and May 27 of the same year. In 2017, the project's natural gas production grew steadily, delivering 1.8 billion cubic meters of purified gas.

Hainan-Yuedong Project

On February 24, 2004, CNPC signed a contract on petroleum development and production in Hainan-Yuedong Block in the Bohai Bay Basin with Tincy Group Energy Resources Limited. Tincy is the operator of the project.

The contract area, a part of the Liaohe Oilfield with an area of 349.8 square kilometers, is located at the southern end of Hainan-Yuedong structural belt in the Bohai Bay Basin. The contract term is 30 years with a production period of 20 years and a three-year pilot experiment period.

South Sulige Natural Gas Project

South Sulige block, covering an area of 2,392 square kilometers,is located in the Ordos Basin. On March 2, 2006, CNPC and Total signed a natural gas development and production contract for Southern Sulige Block, which is CNPC's second joint project for gas development in the Ordos Basin. Total is our partner in the project and CNPC is the operator.

In 2014, the block produced 1.58 billion cubic meters of natural gas, or more than one million tons of oil equivalent. The matching technologies for tight gas development represented by factory-like drilling and completion and sequential fracturing and gas testing operations were improved and widely applied in our independent operations in China. In 2017, the project's natural gas production and commercial gas sales amounted to 2 billion.

Chuanzhong Natural Gas Project

Located in the Sichuan Basin, the project covers an area of 528 square kilometers and operates under an agreement with American EOG Resources. In 2017, the project produced 230 million cubic meters of natural gas, with daily output doubled from 0.5 million cubic metersat the beginning of year to 1 million cubic meters at the year end, thanks to continuous technological optimization and improvement. Meanwhile, measures were taken to streamline management and control drilling investment and lifting cost, facilitating the low-cost development of the project.

Jinqiu Natural Gas Project

Jinqiu Block covers an area of 4,068 square kilometers in the Sichuan Basin. Shell Group is our partner and the operator of the project. In 2012, 14 wells were drilled and 11 were completed at this block, showing favorable potential for tight gas development.


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