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 Exploration & Production Department is in charge of the management of oil and gas exploration, production, reserves and assets, as well as the marketing of oil and gas. A number of oil and gas subsidiaries are under its administration, namely, Sinopec Shengli Oilfield, Sinopec Zhongyuan Oilfield, Sinopec Henan Oilfield, Sinopec Jiangsu Oilfield, Sinopec Jianghan Oilfield, Sinopec Northwest Oilfield Company, Sinopec Southwest Oil and Gas Company, Sinopec North China Company, Sinopec Southern Exploration Company, Sinopec Northeast Company, Sinopec East China Company, Sinopec Shanghai Offshore Oil & Gas Company, etc. Most of Sinopec's oil and gas blocks are located in the eastern, western and southern parts of China. By the end of 2010, the Company owned 307 exploration licenses covering 968,200 km2, and 193 production licenses covering 19,136 km2.
By December 31, 2010, the total remaining recoverable hydrocarbon reserves amounted to 3963 mmboe, 2888mmbbls of crude oil and 6447 bcf of natural gas.
In 2010, the Company made quite a number of achievements in oil and gas exploration and production. In exploration, basing on resource strategy of “stabilizing output in east mature fields, accelerating development in the western frontier areas, developing the southern China and making breakthrough on offshore”, the Company advanced the exploration in frontier areas, added new reserves to mature fields, stressed on technological breakthrough, strengthened fine management, and carried out integration of E&P, which made a new progress on E&P segment. In production, through strengthening control of investment and cost, adhering to rational development and technical innovation, the Company continuously focused on increasing reserves development ratio, oilfield yield and single-well capacity with the core of adjusting structure and focusing on operational optimization and investment return. Oil and gas production maintained a sound momentum. Last year the Company produced 327.85 mmbbls of crude oil and 441.39 bcf of natural gas.
The Company takes a leading position in China in terms of oilfields E&P technologies and oil recovery technologies which mainly including 3D seismic survey technology, high quality and quick drilling technology, tertiary oil recovery technology, etc. In addition, the Company owns a team of technical professionals with rich E&P experiences.
Shengli Oilfield is the most important crude producing field of the Company. In 2010, Shengli Oilfield produced 194.11 mmbbls of crude oil and 17.93 bcf of natural gas.
Summary of Operations of the Exploration and Production Segment:
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2010
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2009
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2008
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Change from 2009 to 2010(%)
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Crude oil production (mmbbls)
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327.85
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327.62
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322.02
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0.1
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Including: China
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302.18
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301.15
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296.80
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0.3
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Africa
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25.67
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26.47
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25.22
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(3.0)
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Natural gas production (bcf)
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441.39
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299.01
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293.07
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47.6
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Proved reserve of crude oil (mmbbls)
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2,888
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2,920
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2,961
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(1.1)
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Proved reserve of natural gas (bcf)
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6,447
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6,739
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6,959
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(4.3)
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Proved reserve of crude oil and natural gas ( mmboe )
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3,963
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4,043
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4,121
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(2.0)
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Note: 1. Inclusive of 100% of production and reserve of SSI.
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 2010, EBIT of the segment was RMB 47.15 billion, increased by 97.3 % over the previous year.
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