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Exploration and Development Business

  Exploration and Development includes the exploration and development of crude oil and natural gas, and the exploration and development on new energy such as oil shale, geothermal resources and coal-bed gas and so on. It consists of 18 units: No.1 Oil Production Company to No.10 Oil Production Company, Yushulin Oilfield Development Co., Ltd., Toutai Oilfield Co., Ltd., Natural Gas Company, Gas Production Company, Exploration and Development Research Institute, Daqing Oilfield Production Technology Institute, Storage, Transportation and Marketing Company, Haila’er Petroleum Exploration and Development Administration, and Drilling and Exploration Engineering Company Fangxing Investment Co., Ltd.
  The exploration scope includes 15 basins 56 blocks together: over the whole territory of Heilongjiang province, Haila’er of Inner Mongolia, Yanji and Hunchun of Jilin province and so on and a registered prospecting area of 240,000km2. With the strong support of Group Company, we have purchased three blocks: block 19, block 21 and block 22 of Tamsag in Mongolia, and this indicates that a key step has been taken in exploration and development abroad, and it opens a new option for Daqing Oilfield to go abroad to look for resource replacement.
  On September 26, 1959, Songjisan well was opened up and started the industrial oil flow, which symbolized the establishment of Daqing Oilfield. Over 50 years of the oilfield development and construction, the accumulative oil production has reached 2,000,000,000 tons, which has accounted for 40% of the total crude oil production in during that period across the whole of China. From year of 1976 to 2002, an outstanding 50,000,000tons stable production of crude oil continuous for 27 years has been produced marking it as a great achievement oilfield exploration history throughout world; The tertiary oil recovery remains stable with production of 10,000,000 tons crude oil continuously for 7 years, and the recovery factor for this major oilfield has broken through 50%, which is 10-15 percent higher than the similar kinds of oilfield in the world.
  In recent years, through emancipating the mind, deepening the cognition, further developing three advantage exploration theories technologies such as the large scale of depression lake basin lithologic deposit, deep-zone volcanic rock gas reservoir, complicated fault basin, and the important discoveries on natural gas exploration in the northern shallow layer of Songliao Basin, Haila’er Basin and the northern deep layer of Songliao Basin have been achieved, a new peak on reserve growth has been met, with more than 100,000,000tons oil reserve continuously produced for 5 years, has been realized. By the end of 2008, the accumulative proven petroleum geological reserves have reached 6,362,000,000 tons. Among which, the proved petroleum geological reserves in Haila’er Basin is about 200,000,000 tons, and the proven natural gas geological reserves in the deep layer of Songliao Basin is about 240,000,000,000m3.
  During 50 years of development and construction, Daqing Oilfield has insisted on core technology development path, with self intellectual property right, more than 10000 scientific and technological achievements have been achieved accumulatively, and a complete set of continental oil and geological theory and heterogeneous large-scale sand stone oilfield geological development theory and engineering series have been formed. The continental multilayer heterogeneous sandstone oilfield water injection technology, polymer flooding technology, ASP flooding technology, are all ranked as world leaders. While at the same time constructing the biggest tertiary oil recovery basis in the world, the strategic reserve technical research has also made great progress, the indoor research and small-scale site test shows that foam flooding technology can improve the recovery efficiency 25-30 percentage point more than water flooding, which is the leading flooding technology at present in the world; microbiological oil recovery technology has developed a series of test bacteria, which can further increase oil recovery efficiency after tertiary oil recovery, and it is likely it will become the main technology of the fourth oil recovery in the later stage of oilfield development.
  Related links: No.1 Oil Production Company, No.2 Oil Production Company, No.3 Oil Production Company, No.4 Oil Production Company, No.5 Oil Production Company, No.6 Oil Production Company, No.7 Oil Production Company, No.8 Oil Production Company, No.9 Oil Production Company, No.10 Oil Production Company, Yushulin Oilfield Development Co., Ltd., Toutai Oilfield Co., Ltd., Haila’er Petroleum Exploration and Development Administration, Hulunbeier Company, PetroChina Tamsag Company, Gas Production Company, Natural Gas Company, Storage, Transportation and Marketing Company, Downhole Service Company, Exploration and Development Research Institute, Daqing Oilfield Construction Design and Research Institute, Oil Production Engineering Research Institute.