HIGH TECH POSTING E&D SUCCESSES IN CHINA

Advanced technology is drawing credit for China's progress in exploration and development. Exploration in and near eastern China's Shengli oil complex has been aided by introduction of 3-D seismic surveying, giving a significant boost to the estimated resource there. Meanwhile, a surge in horizontal drilling hit China this year, and the country is applying the technique in eight of its producing areas. Exploration in Shengli complex China's second largest oil producing area, has

Aug. 19, 1991

3 min read

Advanced technology is drawing credit for China's progress in exploration and development.

Exploration in and near eastern China's Shengli oil complex has been aided by introduction of 3-D seismic surveying, giving a significant boost to the estimated resource there.

Meanwhile, a surge in horizontal drilling hit China this year, and the country is applying the technique in eight of its producing areas.

SHENGLI AREA

Exploration in Shengli complex China's second largest oil producing area, has resulted in several significant discoveries this year.

Shuai Defu, general geological engineer of the Shengli Oilfield Administration, cites the use of 3-D surveys as a key factor in the discoveries.

Ten oil discoveries and/or step-outs were drilled near Zibo City this year, he noted, with pay thicknesses of 66330 ft. Potential reserves are pegged at a combined 365 million bbl for the new area.

In addition, five wells drilled in the Chengdao area in Bohai Bay have tested oil, Xinhua News Agency reports, The 21 Chengbei flowed at rates of 772-860 b/d, and 11 Chengbei cut pay zones 165-198 ft thick, Xinhua reported. No results were disclosed for the other three wells.

Shuai said the administration is drilling ahead at 3 Chengbei, a horizontal well, and proceeding with plans to drill 25 Chengbei. He said if both encounter oil, it will confirm that Chengdao offshore field is in communication with Zhuangxi onshore oil field, indicating a new productive area of 8 sq km with an estimated resource of 146 million bbl of oil.

Shuai predicted an additional resource of 292 million bbl of oil will be proved in the Bohai Bay area this year.

HORIZONTAL DRILLING

Targets for horizontal drilling include Shengli and a discovery in Henan province.

The Shengli complex saw its first deep horizontal well drilled.

Hole displacement totaled 1,667 ft, and production peaked at 1,679 b/d, equal to nine typical vertical wells in the area, Xinhua reported. In addition, the well has paid back drilling costs, averaging 811 b/d in first half 1991.

Sun Jiancheng, chief engineer of horizontal drilling research, said three more horizontal wells have been completed in the Shengli oil complex since the first one was drilled early this year.

A discovery in Henan province near Laohekou, east of the Chengdong producing area, is being developed with horizontal wells. Two horizontal wells have been drilled into a fault block so far. Both encountered oil, and Xinhua described the discovery as a medium sized oil field.