(Yicai Global) May 30 -- Xinjiang Oilfield, a subsidiary of PetroChina, has achieved a significant breakthrough in finding more oil in Mahu area of the Junggar Basin in northwestern China's Xinjiang Uygur Autonomous Region, state-owned China Central Television, CCTV, reported. The new finding, which will help confirm earlier estimates of rich oil reserves in the area, will boost China's domestic oil production and energy security.
PetroChina Xinjiang found oil in two exploration wells in Mahu area, CCTV said in what it called the proof of abundant oil reserves in the region. Earlier estimates suggested there could be nearly one billion tons of oil reserves in the area.
"Oil-in-place volumes are now estimated at 520 million tonnes or 3.8 billion barrels," said a report by consultancy firm Wood Mackenzie in December. "Unlike shale or tight oil resource plays, Mahu is considered a conventional discovery, with defined source rock and reservoir layers. But, the field will require unconventional techniques such as hydraulic fracturing and horizontal drilling to maximise recovery."
With an annual GDP growth of over 6 percent, China's booming and energy-thirsty economy needs to ensure the security of oil supply. China surpassed the US in annual gross crude oil imports last year. It imported 8.4 million barrels per day compared with 7.9 million b/d of US crude oil imports, according to the US Energy Information Administration, EIA.
Oil companies finally discovered one of the world's biggest oil fields after more than 20 years of efforts, said Wang Xiaojun, head of the exploration and development research institute at Xinjiang Oilfield. There are about 500 million tons of proven oil reserves and 500 million tons of estimated reserves, he said.
Over the last two years, Mahu area has achieved a capacity of 1.37 million tons of crude oil. It is estimated to reach an annual capacity of 4 million tons over the next three years.
Editor: Mevlut Katik