China's Sinopec taps large shale gas reserve in Sichuan exploration well

A man looks at models displayed at the booth of Chinese oil company Sinopec during the China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Florence Lo

SINGAPORE, Oct 18 (Reuters) - China's Sinopec Corp (600028.SS) has struck a high-yielding shale gas exploration well in southwestern Sichuan basin with daily gas flow of 258,600 cubic meters, the state oil and gas major said on Tuesday.

The success of the Jinshi-103HK well could potentially lead to another sizeable shale gas field with geological reserves of 387.8 billion cubic meters, Sinopec said in a statement, without specifying the exact location of the well.

It is Sinopec's latest breakthrough in tapping the unconventional gas resource after the Weirong field, located near the city of Zigong in Sichuan province, started producing in early 2021 with a a certified proven reserve of 124.7 bcm.

Under President Xi Jinping's call to boost domestic energy supply security, Chinese national energy champions are accelerating the development of more costly, geologically challenging oil and gas resources.

Companies have also unlocked several shale oil discoveries at eastern and northeastern mature oilfields.

Reporting by Chen Aizhu; Editing by Kirsten Donovan

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