Oil and Gas Exploration-Shaanxi Yanchang Petroleum (Group) Corp. Ltd.


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Oil and Gas Exploration

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Oil and Gas Exploration
Exploration of Yanchang Petroleum began in 1905 and gained plentiful and substantial achievements in the more than 100 years experience of exploration and exploitation. Since the end of 1980s, the firm has continuously increased the investment in exploration, enlarged the exploration area, and discovered in succession such oilfields as Zichang, Yujiaping, Yaodian, Fengfuchuan, Chuankou, Zibei, Zhidan, Panlong etc. Especially since the tenth five year, the firm followed the policy: exploration goes ahead and in comprehensive approach. It introduced large amount of practical technologies, and applied the achievements of geological research to the exploration practice, thus significantly increased the area of geological reserves, from the former 228.6 million tons to 558.84 million tons. Newly explored geological reserves reached 360.24 million tons, the reserve area explored to be 712.9 square kilometers, thus laid the foundation for the sustained development of oilfield. Since the restructure in 2005, the former 14 drills and production companies have merged into oil production plants, which enforced the strength and enlarged the exploration area of the corporation.
At present the resource area registered by the corporation reaches 108.9 thousand square kilometers, in which 10.7 thousand within the province. The coverage includes such basins as Ordos, Erlian, Hailaer, Songliao, the Great Bend of the Huanghe River, Qiangtang, Nanxiang, Dongting Lake, etc. Beyond the Ordos basin headquarter where the corporation resides, it also carries on intense explorations in other basins and places, e.g., geochemical exploration and drilling practices in Erlian and Shiguai basins, and Huan county, etc., and mean while collects various materials, and launches comprehensive geological researches in other basins.
The corporation established the development policy “equally raising oil and gas” to meet the greater diversified development of the corporation, to meet the nation’s increasing need for natural gas, and to make the better use of resources. After the restructure in 2005, the leading group of the corporation correctly appraised the situation, strengthened the intensity of natural gas exploration. In2006, the most crucial year in the history of natural gas exploration of the corporation, 2-d seismic explorations, drillings and gas tests are comprehensively spread out. Up to now, the accumulative investment in natural gas has reached more than 200 million yuan, and 2-d seismic survey lines reached 2145 kilometers, and the corporation has completed ten wells in the arranged exploration of thirteen wells, with gas tested in six wells, ten layers, in which three wells, four layers, reaching industrial gas flow.
By multiple means, internal training and external connection, the corporation introduced advanced technology and most novel achievements of geological research. On the exploration demand, it launched the comprehensive exploration technology research on the basis of comprehensive geological research coordinated with auxiliary approaches of other practical technologies. Thus it has developed an integrated exploration and exploitation technology with advanced concept and suited to the practice of the corporation. In the mean time, to speed up the pace of oil and natural gas exploration in basins out of Shaanxi province, the corporation reorganized its strength to set up two special exploration divisions – petroleum exploration division and natural gas exploration division.
In retrospect and prospect, although with greater and greater difficulties, the corporation, backed by the solid support and wise guidance of provincial Party committee and provincial government, will carry as before the exploration tenet “seizing the resources as best as we can, searching commercial reserves as best as we can”. The exploration effort will certainly get greater achievement and make greater contribution to the developments of the nation and the corporation.

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