In 2023, the newly added proven oil reserves was 155 million tonnes, probable reserves was 525 million tonnes, and possible reserves was 562 million tonnes. The newly added proven natural gas reserves was 281.7 billion cubic meters, probable reserves was 427.3 billion cubic meters, and possible reserves was 1,120.1 billion cubic meters. The annual production of crude oil was 35.441 million tonnes, up by 118,000 tonnes. The production of natural gas was 37.81 billion cubic meters, with an increase of 2.54 billion cubic meters. The equivalent oil and gas production was 65.57 million tonnes, setting a historic high. The newly built crude oil production capacity was 3.326 million tonnes, up 454,000 tonnes. Newly built natural gas production capacity was 8.64 billion cubic meters (including coalbed methane), up 1.24 billion cubic meters.

Oil and Gas Exploration

We intensified risk exploration in deep ground and shale oil and gas blocks, strengthened exploration with integrated evaluation in oil and gas rich zones, actively maintained and expanded mining rights, and achieved 4 major breakthroughs, 9 important breakthroughs, and 18 commercial discoveries, exceeding the annual reserve targets.

Oil Exploration.  A major breakthrough was made in the exploration of ultra-deep oil and gas in the new zone in the central part of Shunbei, Tarim Basin, with newly increased possible oil and gas reserves of 25.08 million tonnes and 144.2 billion cubic meters respectively. A major breakthrough was made in the new field of oil exploration in the complex piedmont belt in the northwest margin of the Junggar Basin, with an increase of 30.63 million tonnes of possible reserves. Significant breakthroughs were made in the exploration of oil and gas in the new Jurassic strata in northern Sichuan, with new possible oil reserves of 8.26 million tonnes and gas reserves of 72.1 billion cubic meters. We continued promoting the construction of National Demonstration Zone of Shale Oil in Shengli Jiyang, with the discovery of three 100 million-tonne shale oil fields including Xinxing, Xinfeng, and Xinhe. Significant breakthroughs were made in the exploration of shale oil in the Fu'er section of the Subei Basin, and the results of shale oil exploration in Fuxing continued to expand.

Natural Gas Exploration.  The integrated research and development of tight gas in the Xujiahe formation of Hexing field in western Sichuan achieved significant results, with an additional proven reserves of 133 billion cubic meters. The Daniudi gas field in the Ordos Basin achieved a major breakthrough in the exploration of 2,800-meter deep coalbed methane, with an additional possible reserves of 122.6 billion cubic meters. Significant breakthroughs were made in shale gas exploration of the Permian Dalong formation in Puguang, Sichuan Basin, and the Permian Wujiaping formation in the Hongxing area of western Hubei and eastern Chongqing. The deep coalbed methane in Nanchuan was successfully selected as one of the first national demonstration projects for coalbed methane exploration and development.

Oilfield Development

We fully implemented the annual production and operation plan, closely followed the production capacity limit to organize operations, strengthened production and sales coordination in key regions, and completed the annual crude oil production task. The annual production of crude oil was 35.441 million tonnes, with an increase of 118,000 tonnes, exceeding the "7-year Action Plan" for five consecutive years.

We developed and implemented a three-year plan for the release of undeveloped reserves, strengthened the integration of geology and engineering, and promoted the application of production improvement technologies such as complex structured wells, pressure-driven water injection, volume fracturing, and viscosity reducing chemical flooding. We efficiently promoted the construction of production capacity in Jiyang, Tahe, Zhunxi, and offshore areas, solidly promoted the three-dimensional development test of shale oil, and the effect of the Boxing Fanyeping 1 well group exceeded the design plan. The Niuzhuang large well group, Minfeng large platform and small well group, and multiple well groups in Qintong witnessed initial results, with a new production capacity of 3.326 million tonnes, an increase of 454,000 tonnes, setting a new high since 2015.

We strengthened the precise description and modeling of oil reservoirs, consolidated the precise management of oil reservoir classification, and stabilized the natural decline rate and comprehensive water content at 10.4% and 90.9% respectively. The water-flooded reservoir received network improvement, subdivided water injection, and flow field adjustment, with a natural decline rate of 10.2%, a decrease of 0.1 percentage points. The implementation of thermal recovery and efficiency improvement technology in heavy oil reservoirs resulted in a stable oil to steam ratio of 0.57. We strengthened nitrogen injection and comprehensive unit management in Tahe fractured and vuggy oil reservoir, realizing a natural decline rate of 15.3%, a decrease of 0.3 percentage points. Chemical flooding expanded its application fields and scale, with an annual oil production of 3.19 million tonnes, up 1.51 million tonnes, reaching new highs in nearly 7 years. We solidly promoted the CCUS industrialization demonstration projects in Shengli and northern Jiangsu, injecting 1.16 million tonnes of carbon dioxide, up 520,000 tonnes, producing 110,000 tonnes of oil, up 39,000 tonnes.

Natural Gas Development

In conventional gas,  we followed the principle of pursuing high yield and efficient development with few wells, vigorously optimized development plans, strengthened technological innovation and application, and efficiently promoted largescale production projects such as the East China Sea ZZ, west Sichuan gas field, and Shunbei second zone. The Xujiahe formation, which had been dormant for many years, was built with a production capacity of 1.5 billion cubic meters, unlocking the challenging reserves. The stable production foundation of major gas fields such as Puguang, Yuanba, Daniudi, West Sichuan Shallow Layer, and Dongsheng had been further consolidated. The annual newly built production capacity was 6.09 billion cubic meters, an increase of 1.54 billion cubic meters, with gas production of 27.211 billion cubic meters, up 2.256 billion cubic meters.

In shale gas,  we fully pushed forward the development and adjustment of Fuling shale gas field, steadily carried forward the production capacity construction of new areas such as Dongsheng, Baima, and Dingshan. The Company actively promoted the evaluation and well group testing in the north of Yongchuan deep shale gas, Wulong-Daozhen atmospheric shale gas, Puguang Jurassic and Jingyan-Jianwei Cambrian new layer shale gas. The annual new production capacity was 2.48 billion cubic meters, with gas production of 10.182 billion cubic meters.

In coalbed methane,  we continued to focus on adjusting and tapping the potential in the southern part of Yanchuan and rolling production. In 2023, we built a new production capacity of 70 million cubic meters and produced 413 million cubic meters of gas.