Shengli Jiyang completes China's first continental rift lake basin shale‑oil demonstration area
- The National Energy Administration approved Shengli Jiyang as a national shale‑oil demonstration area in January 2022, the third such area after Xinjiang Jimusaer and Daqing Gulong.
- The area proved two 100‑million‑ton fields, Xinxing and Xinhe, contributing a cumulative 327 million tons to proven reserves.
- Oil production exceeded 500,000 tons in 2024 and reached 700,000 tons in 2025, with cumulative output now above 2 million tons.
- Technical advances raised average single‑well full‑cycle output to 43,000 tons, cut 6,000m well drilling cycles from 133 days to as fast as 17 days, and reduced single‑well energy use by 12.6% versus 2021.
Establishment and purpose
In January 2022 the National Energy Administration approved the Shengli Jiyang Shale Oil National Demonstration Area, the third national shale‑oil demonstration area after Xinjiang Jimusaer and Daqing Gulong. The area is identified as the first national‑level demonstration in a continental rift lake basin and is presented as a replicable model for large‑scale shale‑oil development in such basins.
Reserves and production
The demonstration area has proven two 100‑million‑ton shale oil fields, Xinxing and Xinhe, yielding a cumulative increase of 327 million tons in proven reserves. Production exceeded 500,000 tons in 2024—achieving the demonstration target a year early—and rose to 700,000 tons in 2025; cumulative production has surpassed 2 million tons.
Technical progress
Shengli Oilfield advanced a "reservoir‑fracture‑pressure" ternary theory for shale in continental rift lake basins and developed six key technologies within an integrated geology‑and‑engineering model. Average single‑well full‑cycle oil production reached 43,000 tons, drilling cycles for 6,000‑meter wells fell from 133 days to as fast as 17 days, and core equipment localization exceeded 95%.
Green and low‑carbon measures
The project implemented clean drilling to reduce average single‑well energy consumption by 12.6% in 2025 versus 2021, introduced electric construction with a 25% green‑electricity substitution rate, and trialed CO2 high‑pressure miscible huff‑and‑puff displacement to boost recovery while enabling carbon sequestration.
Source: Sinopec
