Wedoany.com Report-Aug. 5, China Petroleum and Chemical Corp (Sinopec) has announced the discovery of the Fuxing oilfield in the Sichuan Basin, marking the first shale oilfield in Southwest China. Located in Chongqing on the basin’s southeastern edge, the oilfield holds initial proven reserves of 20.1 million metric tons of oil and 12.35 billion cubic meters of natural gas, enhancing China’s domestic energy resources.

Fuxing oilfield in the Sichuan Basin, the first shale oilfield in the country's southwestern region.

Shale oil, consisting of liquid hydrocarbons trapped in shale rock formations, is extracted from organic-rich shale and thin layers of carbonate rock, sandstone, and siltstone. Historically, the Sichuan Basin has been recognized for its abundant natural gas but limited oil resources. The Fuxing discovery represents a significant advancement in shale oil exploration, opening new opportunities for resource expansion in the region.

Wei Xiangfeng, manager of Sinopec’s shale gas project department, emphasized the importance of the find: “The theoretical advancements and key technologies developed at the Fuxing oilfield are of great significance in supplementing and refining China’s shale oil and gas exploration theories, technologies and standards.” Sinopec plans to deepen its understanding of resource enrichment patterns and conduct comprehensive assessments to establish a second shale oil reserve base in the Sichuan Basin.

Wu Mouyuan, vice-president of the Economics and Technology Research Institute under China National Petroleum Corp, highlighted the broader context: “China is making strides in expanding its energy resources by tapping into unconventional sources, notably with significant progress in shale gas exploration.” He noted that unexploited resources like low-maturity shale oil hold substantial potential for future energy development.

The Fuxing oilfield follows Sinopec’s earlier discoveries of the Xinxing and Qintong oilfields in eastern China, announced in March, with combined proven reserves of 180 million tons, approved by the Ministry of Natural Resources. These efforts reflect China’s commitment to enhancing its oil and gas production through unconventional resources, supporting energy security and sustainable development.

The Fuxing discovery is expected to drive further exploration in the Sichuan Basin, strengthening China’s position in the global energy market while advancing innovative technologies for shale resource extraction.