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 The 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 producers are under its administration, namely, Sinopec Shengli Oilfield Co., Ltd., Sinopec Zhongyuan Oilfield Company, Sinopec Henan Oilfield Company, Sinopec Jiangsu Oilfield Company, Sinopec Jianghan Oilfield Company, Sinopec Northwest Company, Sinopec Southwest Company, Sinopec North China 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, covering 0.965 million km2 with 334 exploration licenses, and 190 exploitation licenses covering 18105 km2.
By Dec. 31st , 2008, the total remaining recoverable reserves amounted to 4001 mmboe (2841 mmbbls of crude oil and 69593 bcf of natural gas).
In 2008, 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 exploring offshore opportunities”, the Company continually optimized layout, strengthened management, braving in innovation, and adhered to fine search. In 2008, the overall incremental proved oil and gas reserves reached 267.6 mmboe, the incremental proved oil reserves in place reached 114 mmbbls while the incremental proved natural gas reserves in place aggregated 921.6 bcf. In production, through fine development and technical innovation, the Company focused on key projects such as stabilizing the production of mature oilfields in the east, quickly putting new production capacities in the west into operation as well as gas transmission from Sichuan to East China. Sinopec hit a historical high in oil and gas production through further improving the development of oil and gas fields. Last year the Company produced 2.968 mmbbls of crude oil and 293.07 bcf of natural gas.
The Company takes a leading position in China in terms of oilfields E&P technologies and oil recovery technologies, 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, the 2nd largest producing oilfield in China, is the most important crude producing field of the Company. In 2008, Shengli Oilfield produced 196.96 mmbbls of crude oil and 27.19 bcf of natural gas.
Summary of Operations of the Exploration and Production Segment:
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2008
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2007
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2006
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2008 changes over 2007(%)
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Crude oil production (mmbbls)
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296.8
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1.8
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Natural gas production (bcf)
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2,931
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3.7
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Newly added proved reserves of crude oil (mmbbls)
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114
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442.9
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Newly added proved reserves of natural gas (bcf)
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9,216
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(75.5)
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Year end proved reserves of crude oil (mmbbls)
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2,841
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(6.1)
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Year end proved reserves of natural gas (bcf)
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69,593
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9.9
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Year end proved reserves of crude oil and natural gas (mmboe)
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4,001
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(1.9)
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1 tonne=7.1 bbl; 1 cubic meter=35.31 cubic feet
In 2008, the segment's operating profit was RMB 66.6 billion, decreased by 36.5 % over the previous year.
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