Shengli Oilfield leads exploration breakthroughs with theoretical innovation, stimulates cost reduction and efficiency improvements with technological progress, and boosts both quantity and quality enhancements with equipment upgrades, driving shale oil exploration and development in China to new heights.

ZIBO, China, April 1, 2025 -- China Petroleum & Chemical Corporation's (HKG: 0386, "Sinopec" or "the Company") announced the discovery of over 140 million tonnes of proven geological reserves of shale oil with technically recoverable reserves of 11.3599 million tonnes at its Shengli Oilfield's Jiyang shale oil national demonstration zone in East China's Shandong province on March 24, 2025. This is the first shale oil field with proven geological reserves of over 100 million tonnes that has been certificated by China's Ministry of Natural Resources.

Shengli Oilfield has developed advanced automated drilling equipment that extracts efficiently, and explored horizontal well optimization and fast drilling technology, and dense cutting combined seam network volume fracturing technology. The average drilling cycle has been reduced from 133 days to 29.5 days, and the drilling cycle of 6,000-meter wells has reached 17.7 days, and the single well production capacity has continued to set new records.

"Through 150,000 times of indoor experiments, we developed the theory of shale oil enrichment in continental fault lake basins, reshaping the traditional common understanding that shale oil can only be enriched and mobilized when its maturity is higher than 0.9%," shared Liu Huimin, Vice President and Chief Geologist of Sinopec Shengli Oilfield Branch. "With the support of this theory, the amount of shale oil resources in Jiyang has tripled after re-evaluation."

Shengli Oilfield has tackled challenges of high temperature, pressure, and leakage in shale oil development. By advancing reserve-fracture-pressure theories, developing full-cycle 3D technologies, and building an integrated geological engineering platform, it expanded shale oil development from three to seven layers, addressing extraction efficiency and maximizing resource recovery.

Sun Yongzhuang, Assistant to President of Sinopec Group and Managing Director of Shengli Petroleum Administration Bureau Co., said estimated shale oil resources in Shengli Oilfield have reached 10.5 billion tonnes, equivalent to the conventional oil and gas resources recovered during the past  60 years in China. "After more than 10 years of continuous research and innovative breakthroughs, Shengli Oilfield is expected to add 80 million tonnes of proven reserves this year through the integrated promotion of exploration and development," Mr. Sun said.

Sinopec is ramping up its shale oil exploration and development efforts, achieving key breakthroughs in multiple areas. In January 2021, the Company tested a high-yield shale oil and gas well at the Fuling shale gas field in Chongqing, with shale oil production surpassing 30,000 tonnes for the first time in 2024. By December 2021, Sinopec identified a favorable area of 420 square kilometers in the Qintong Depression of the Northern Jiangsu Basin, with shale oil resources totaling 350 million tonnes. In July 2022, a Northern Jiangsu Basin well yielded more than 30 tonnes of oil and 1,500 cubic meters of natural gas daily, activating 1.1 billion tonnes of shale oil resources. Sinopec's 2024 shale oil production reached 705,000 tonnes, up 308,000 tons year-over-year.

Jia Chengzao, an Academician with the Chinese Academy of Sciences and an expert in petroleum and structural geology, said shale oil is a key resource for boosting and stabilizing domestic crude oil production, commenting, "Proven reserves are the core indicator supporting current production. In January, the Ministry of Natural Resources issued specifications for estimating oil reserves in shale formations, marking a new stage of normalization and standardization in China's shale oil resource management."

For more information, please visit http://www.sinopec.com/listco/en/.

Photo - https://mma.prnewswire.com/media/2655036/SINOPEC_Discovers_Record_Amounts_Shale_Oil_Its_East_China_Shengli.jpg

Logo - https://mma.prnewswire.com/media/960416/SINOPEC_Logo.jpg