On October 22, a reporter from China News Service learned from the Qinghai Oilfield Branch of China National Petroleum Corporation that as of October 21, 2023, the oil and gas output of the Qinghai Oilfield had reached 82.89% and 80.24% of their annual production targets, respectively.
In terms of future plans, the Qinghai Oilfield is focusing on the development of 16 new production capacity blocks for crude oil in 2024, with 80% of these located within the existing mature areas. However, challenges such as the relatively low utilization of water-driven reserves, stable pressure levels in primary oil fields, and a decline in annual liquid production have hindered effective production growth. As a result, there has been a decrease in individual well output, alongside a rigid increase in capital investment for capacity expansion.
In response to these challenges, the Qinghai Oilfield is committed to enhancing production efficiency across all stages of capacity deployment, optimization, and implementation. Their strategy includes perfecting the well network, refining subdivisions, and progressively expanding deployment based on the economic benefits of projects. By the end of September, they had successfully established a production capacity of 269,000 tons, with cumulative oil output from wellheads reaching 122,000 tons.
Moreover, in the gas sector, the Qinghai Oilfield is working to achieve targeted production capacity while managing existing investment and operational costs. They are focusing on precision well selection, dynamic adjustments, continuous monitoring, and cost reduction to enhance efficiency. By the end of September, they achieved a gas production capacity of 150 million cubic meters, with a capacity compliance rate of 121%.
In recent years, the Qinghai Oilfield has made significant strides in boosting natural gas output through targeted approaches such as addressing problematic gas wells, implementing maintenance measures, commissioning new wells, and enhancing engineering productivity. A dedicated production team has been established to refine output distribution and performance metrics, resulting in an increase in daily gas production to over 16.7 million cubic meters.
