New breakthroughs in tight oil exploration in Qinghai Oilfield

Recent advancements in tight oil (shale oil) exploration at Zhaha Springs, within the Qinghai Oilfield operated by PetroChina, have marked a significant milestone. As of now, well Zha 9 has produced over 125 cubic meters of crude oil. This achievement comes on the heels of the official launch of the National 973 Program titled "Formation Mechanism and Enrichment Regularity of China's Terrestrial Tight Oil (Shale Oil)" earlier this year. The program aims to deepen understanding of domestic tight oil resources, with Zhaha Springs serving as a key test site. Since 2013, Qinghai Oilfield has been actively exploring this region, targeting the first hundred million tons of tight oil reserves. Zha 9 well is located in the Zhahaquan area, part of the western Qaidam Basin depression. It is one of the most important wells in the Qinghai Oilfield’s exploration strategy. According to Zou Cai, chief scientist of the 973 Program and associate dean at the China Petroleum Exploration Institute, the U.S. has led the development of marine shale gas, while China is poised to become a global leader in continental shale oil. The project will focus on five major basins, including Ordos and Junggar, to conduct fundamental research and develop new geological theories and evaluation methods for terrestrial tight oil. This initiative addresses three critical needs: resource potential assessment, favorable area prediction, and reserve size estimation. By doing so, it lays the groundwork for accelerating tight oil and shale oil exploration and enhancing technological innovation and regulatory capabilities across the industry. Drilled to a depth of 3,650 meters in October 2013, well Zha 9 showed strong oil and gas indications during drilling. A total of 95 meters across 27 layers were identified with gas detection anomalies. Specifically, in the N1 formation, 56.4 meters across 19 layers showed oil presence, along with 23.4 meters across six layers that indicated potential oil zones. On February 28, the N1 formation I sand layer was perforated, and the well began producing oil through a 4 mm nozzle, yielding 26.13 cubic meters per day. This success marks an expansion of the tight oil exploration area in Zhaha Springs, extending toward the southeast and increasing the oil-bearing section in the vertical direction.