Tarim Oilfield Output Exceeds 5 Million Tons

By the end of 2002, PetroChina Tarim Oilfield Company, in the heart of Takelamagan Desert, in northwest Xinjiang Autonomous Region has produced 5.006 million tons of crude oil. With its 2002 output, the company's annual production has broken the record of 5 million tons for the first time, becoming China's No.6 onshore oilfield. This means the development and construction of PetroChina Tarim Oilfield has entered a period of large-scale beneficial development characterized by output exceeding investment.

PetroChina Tarim Oilfield's annual production of crude oil has continuously increased from 34,000 tons at the beginning of its operation in 1989, at an average of 410,000 tons per year. Its growth rate ranks No. 1 in China's onshore oilfields. During 13 years since the operation started, the oilfield has established Lunnan, Tazhong, Donghe, Yaha, Hade and Kekeya oil production bases, with an accumulated production of 37.15 million tons. The output value has exceeded RMB40 billion. Profits tax turned over to the state so far have added up to RMB15 billion. In its risky exploration phase, it has made important contributions to the sustainable and stable development of national economy ahead of time.

PetroChina Tarim Oilfield has been upholding the development policy of high yield from scarcely located wells, and high return by fewer staff members since its operation 13 years ago. As a result, it has constantly realized the new breakthrough in the development of oil and gas. This year's oil production per million ton only used 44 wells, 540 wells fewer than the average level of China's onshore oilfields. The employees directly involved in the development and production were less than 700, and the average annual crude oil output per head were over 7,000 tons, 10 times higher than the average level of China's onshore oilfields. The first highly automated desert oilfield in China, Tazhong 4 Oilfield, was established and Yaha condensate gas oilfield, the largest in China, and rare in the world, using ultra-high pressure cyclic gas injection mode to extract gas, was completed. And Lunnan Oilfield realized a stable annual production of 900,000 tons for a sequence of 10 years under the condition of increased water content.

Based on years of development practice, PetroChina Tarim Oilfield constantly drives the integration of exploration and development and implements progressive exploration and development strategies. While ensuring the stable production of the old oilfields, it breaks the forbidden areas and goes all out to explore, and devotes itself to seeking new productivity growth with commercial values. The ultra thin and deep Hadexun margin oil reserve has been developed and constructed into a high efficiency oilfield, with annual output of 800,000 tons, through a series of auxiliary technologies. The oilfield was completed and all investment was recouped in the year of construction. The proven and controlled geologic reserve increased from the initial over 10 million tons to nearly 50 millions tons. The current integration of exploration and development of Tarim Oilfield is affirmed by PetroChina Company Limited.

PetroChina Tarim Oilfield persists in the principle of focusing on economic benefits and carries on the low cost developing strategy through the whole process of oil and gas development. It has created many national records in the development, including average single well daily production of 61 tons, which is 12 times as high as the average daily output of China's onshore wells and the best in China. Its crude oil operating cost decreased year by year, which is not only the lowest of China's onshore oilfields, but also better than the average level of international oil companies. Its construction investment per million-ton capacity is greatly lower than the national average of RMB2.4 billion.

PetroChina Tarim Oilfield sticks to the strategy of producing oil through science and technology, deepens the three-level oil reserve management taking technical innovation and technical breakthrough as the premise, and increases input to science and technology. With an investment of nearly RMB200 million this year, the scientific and technical investment has amounted to 3% of its total sales income. The Oilfield has solved a series of world-level problems including Tarim deep and ultra-deep well water block, evaluation and forecast technology on Lungu Qianshan buried hill carbonatite reserve stratum, etc. Moreover, it also explored and perfected a number of new technologies with Tarim characteristics such as ultra-thin and ultra-deep two-stage horizontal well development, water control to stabilize oil, corrosion prevention and sand removal, etc. These made the recovery ratio of recoverable reserves reach 64%, taking the leading position in China.