Sinopec is China's second largest oil and gas producer. Oil & gas exploration and development zones are in the east, west and south of China. As of 31 December 2011, Sinopec has had 297 exploration licenses covering 966,800 km2 and 192 producing licenses covering 20,300 km2.
It has 12 oil and gas subsidiaries, including Shengli Oilfield Company, Northwest Company, Zhongyuan Oilfield Company, Southwest Oil & Gas Company, Henan Oilfield Company, North China Company, Jianghan Oilfield Company, Jiangsu Oilfield Company, Northeast Oil & Gas Company, East China Company, Shanghai Offshore Oil & Gas Company, and Exploration Southern Company.
In 2011, we made great achievements in oil & gas exploration and development, and secured national oil and gas supply. Implementing our resource strategy of “stabilizing production in the east, strengthening exploration in the west, accelerating growth in the south, expanding offshore exploration, striving a breakthrough in unconventional resources, forging competitive edge through science and technology, and increasing upstream strength”, we made breakthrough in frontier oilfields and new discoveries in mature oilfields, placed more efforts in tackling key technical difficulties and optimizing exploration, over-fulfilling the target in reserves add-up. Recoverable reserves were increased by 410.73 MMboe, in which recoverable crude oil reserves were 280.92 MMbbl, and natural gas 778.82 bcf. In development, aiming “stabilizing production in the east, boosting output in the west, and achieving a great development in natural gas”, we made great efforts in managing old oilfields, speeding up development of the reserves in new oilfields, and vigorously advancing the capacity build-up of major natural gas fields. Additionally, technology research and development were also strengthened, which aimed to increase reserve development and recovery. Thus, further improvement of key operating fields is achieved. Our 2011 production of crude oil and natural gas were 321.73 MMbbl and 516.94 bcf, respectively. Shengli Oilfield is the largest crude oil producer among all Sinopec subsidiaries，and produced 194.11 MMbbl in 2011.
As of 31 December 2011, our recoverable reserves stood at 3966.21 MMbbl oil equivalent, of which crude oil were 2848.1 MMbbl and natural gas were 6708.68 bcf.
To accelerate the pace of development, Sinopec launched five campaigns of exploration and production in Shengli Oilfield, Tarim Basin, Ordos Basin, Sichuan Basin and unconventional oil & gas field at the end of 2011.
Sinopec has a team of technical experts with rich experience in oil & gas exploration and development. We are in the leading position in China in terms of technologies for oilfield exploration development, and extraction, which include 3D seismic technique, tertiary oil recovery, optimum and fast drilling, complex structure wells drilling, in particular, ultra deep well drilling for paleozoic carbonate reservoir, multistage fracturing technology for horizontal well in tight oil & gas formations.
Exploration & Production:
|2011||2010||2009||Change from 2010 to 2011(%)|
|Crude Oil Production (MMbbl)||321.73||327.85||327.62||(1.9)|
|In which China||303.37||302.18||301.15||0.4|
|Natural Gas Production (bcf)||517.07||441.39||299.01||17.1|
|Oil & Gas Production (MM boe)||407.89||401.42||377.45||1.6|
|Proved reserves Crude Oil Reserves (MMbbl)||2848||2,888||2,920||(1.4)|
|Proved reserves Natural Gas Reserves (bcf)||6709||6,447||6,739||4.1|
|Proved reserves Oil & Gas Reserves (MM boe)||3966||3,963||4,043||0.1|
Note: 1.Inclusive of 100% production and reserve of SSI company.
2. For Chinese production of crude oil, 1 ton=7.1 barrels, 1 cubic meter=35.31 cubic feet for natural gas; for production of crude oil in Africa, 1 ton=7.27 barrels.
In 2011, the exploration and production segment achieved an operating income of RMB 71.6 billion, representing an increase of 51.9% over 2010.