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In 2009, the Group carried out petroleum engineering iron team building campaign with the aim of constantly improving the construction capacity and technological level through intensified organizational management, technical skill training and market expansion. This strongly supported the E & P business of the Group and raised its competitiveness in the market.

Construction

The Group set 36 new records in petroleum engineering, among which 28 ranked among the 14th batch of Chinese enterprise new record. It completed 55,683 km of 2D seismic survey, up by 22.2% year on year; 10,501 square km of 3D seismic survey, up by 47.1% year on year. It drilled 4130 wells with footage of 10.2434 million meters. The revenue arising from oilfield surface engineering construction was 16.52 billion RMB, up by 32.15% year on year. The revenue from petroleum mechanical manufacturing was 5.102 billion RMB.

Engineering Technology

The Group sought to make technological breakthrough and pilot experiment in five key areas including drilling and completion technique of horizontal well and special structured well, petroleum engineering equipment R&D and manufacturing technology, reservoir improvement technology, high precision 3D seismic exploration technology and logging technology in complex reservoir and to push the commercialization of mature technology, which facilitates the effective development of key technologies. High precision 3D seismic exploration technology provides sound foundation for precisely defining small-fault-blocks and small traps and describing complex reservoirs.

By 2009, Shengli, Zhongyuan, Jiangsu, Jianghan and Henan oilfields have completed high precision seismic in oil rich sag covering an area of 10,276 square km, accounting for 11% of the total 3D seismic workload. The success rate of complex oil reservoir exploration has been increased by a large margin.

Quite a few new drilling technologies were commercialized; major breakthroughs were vertical drilling technology, gas drilling technology, solid expandable tubular technology, etc.; drilling speeds in key regions like Tahe and Sichuan were raised by a large margin. Complex reservoir improvement technology was improved further: Sichuan new 11 well reservoir was reconstructed successfully with fracturing which ensures the fulfillment of finding hundred billion cubic meters of new proven reserve.

The Group established Research Institute of Petroleum Engineering and Research Institute of Geophysical Exploration, thus basically forming a complete system of petroleum engineering technology R&D and commercialization.

Drilling speed and efficiency increase

The Group carried out research campaign aiming at increasing the drilling speed and efficiency according to the prominent problems and technological demands from three key exploration and development regions including Northwest, west Sichuan and Yuanba areas. The research team indentified the research objectives, technological measures, and progressive schedule after deeply studying the technological difficulties, followed by intensified production and research efforts focusing on safe, managed and technology-based speed increasing. The drilling speed and efficiency was increased apparently, making great contribution to the fulfillment of the reserve and production targets in key regions.

The Group completed drilling 10 deep wells in western Sichuan area and deep wells’ production time efficiency reached 92.91%, up 25.89% year on year. Drilling speed in western Sichuan area was constantly increased, setting regional records in terms of 10 indicators including highest monthly drilling speed, shortest drilling cycle and highest time efficiency. Yuba area hit the highest record of monthly footage, with its average monthly mechanical drilling speed reaching 3.37 m/h, the highest value for the whole year. North West area hit regional records in terms of 24 indicators and completed 10 excellent projects, which enable it to reach the daily production level by 4 months ahead of time, and exceed the targets of reserve and production.

External market

Facing the severe situation, the petroleum engineering team sought to turn pressure into motivation and find opportunities amidst adversity. They equipped themselves with advanced facilities and most capable team members, put great efforts in optimizing production activities and expanding external market, so that they increased their market competitiveness and scored great achievements in external market. Revenue from external market accounted for 23.73% of the total revenue of petroleum engineering.

All the data come from statistics bulletin.