Large Oil Field Estimated to Contain Over 100 Million Tons Discovered in Junggansu

Xinhua News Agency reported on the 2nd that a large oil field estimated to contain more than 100 million tons of reserves has been discovered in Gansu Province, China.

Development site of an oil field estimated to have 100 million tons of reserves in the Hongde area, Gansu Province. Captured by Xinhua News Agency. [Image source=Yonhap News]

Changqing Oilfield, under China National Petroleum Corporation (CNPC), began exploring oil fields in the Hongde area of Qingyang City, Gansu Province, in June 2021, and after more than two years, discovered an oil field estimated to contain over 100 million tons of oil.

Changqing Oilfield stated, "We have confirmed oil reserves in 23 wells in the Hongde area, and among them, the daily production of three wells already exceeds 100 tons." They added, "We are accelerating the development of the Hongde area oil field, with daily crude oil production reaching 504 tons," and introduced that "the annual crude oil production capacity is 500,000 tons."

The Hongde area oil field is located in the western part of the Ordos Basin, where faults and fractures intersect, resulting in complex geological conditions. Due to these challenging geological conditions, the Ordos Basin has long faced difficulties in exploration and development despite being a rich source of oil and gas resources, Xinhua reported.

However, Xinhua evaluated that with Changqing Oilfield having already constructed a super-large oil and gas field with an annual production capacity of 65 million tons in other parts of the Ordos Basin, the recent discovery of a new oil field in the Hongde area and successful crude oil production marks a new stage in resource exploration and development in this region.