In 2024, Sinopec secured a proven oil reserves of 247 million tonnes, and the newly added proven natural gas reserves were 373.9 billion cubic meters. We produced 35.78 million tonnes of crude oil, an increase of 334,000 tonnes, and produced 39.57 billion cubic meters of natural gas, an increase of 1.76 billion cubic meters. New crude oil production capacity of 3.48 million tonnes was built, up by 155,000 tonnes, and new natural gas production capacity of 7.42 billion cubic meters was established.

Oil & Gas Exploration

Sinopec implemented the nation's new round of mineral exploration initiative, enhanced the work in new mining right areas, marine ultra deep layers, marine areas, shale oil and gas, and deep coalbed methane, geophysical exploration and well logging, risk exploration, trap pre-exploration, and integrated evaluation exploration, and took multiple measures to expand mining rights. As a result, we have achieved a number of major breakthroughs and commercial discoveries, exceeding the annual task of the 3P reserves.

Oil Exploration  Significant breakthroughs were achieved in the exploration of new formations in the new shale oil areas of the Jiyang Depression. Two 100-million-tonne resource bases, namely Dongji and Linnan, were consolidated. A highyield breakthrough was made in the Dongpu area, with newly added possible reserves of 31.02 million tonnes. Important breakthroughs were scored in exploring new formations in the new shale oil areas of Section 4, Funing Formation, in the Gaoyou Depression in northern Jiangsu and in the new shale oil area of the Lianggaoshan Formation in the northern part of Fuxing, eastern Sichuan. Important discoveries were made in the exploration in the central part of Shunbei in the Tarim Basin, with newly added proven oil and gas reserves of 19.98 million tonnes and 50.1 billion cubic meters. The Hai-3 well in the Beibuwan Basin obtained a high-yield oil flow of 1,000 cubic meters during the test, rendering an important breakthrough in the oil and gas exploration of the new marine area.

Natural Gas Exploration  Significant breakthroughs were made in the exploration of ultra-deep shale gas in the Cambrian system of Ziyang, southern Sichuan, with a newly added possible reserves of 390.7 billion cubic meters. There was a breakthrough in the fault depression layer in the Lindian area in north Songliao Basin, realizing the first breakthrough in a newly established mining rights area since the new mining rights policy. In the exploration of normal-pressure shale gas in Daozhen, Sichuan Basin, newly added possible reserves were 125.7 billion cubic meters. The newly added proven reserves of normal-pressure shale gas in Yangchungou on the basin margin in the southeast of Sichuan were 121.3 billion cubic meters, and the cumulative proven reserves of the Fuling Shale Gasfield exceeded one trillion cubic meters. The newly added proven natural gas reserves in Xinzhao, northern Hubei, exceeded 100 billion cubic meters.

Oilfield Development

Sinopec fully implemented the annual production plan, organized operations at the capacity ceiling, and intensified the coordination of production and sales in key areas. Throughout the year, 35.78 million tonnes of crude oil was produced, with an increase of 334,000 tonnes.

Capacity Building  We carried out the three-year plan for the utilization of undeveloped reserves, integrated E&P to increase reserves and establish production, as well as the iterative cost reduction through the integration of geology and engineering. We efficiently facilitated the production capacity construction of key projects as the difficult-to-produce reserves in the onshore eastern region, Tahe, Western Junggar, and offshore areas, actively proceeded with the construction of the National Shale Oil Demonstration Zone in Jiyang, Shengli oilfield, sped up the three-dimensional evaluation and well group tests of shale oil in northern Jiangsu and Fuxing. Throughout the year, new production capacity of 3.48 million tonnes was established, an increase of 155,000 tonnes.

Fine Development in the Mature Oilfields  Sinopec deployed enhanced oil recovery technologies, reinforced the characterization of oil reservoirs and comprehensive management of different types of oil reservoirs, expanded the application of technologies such as the chemical flooding "3+2" and carbon dioxide flooding, and continuously consolidated the foundation for stable production in mature oilfields, with the natural decline rate and comprehensive water cut at 10.5% and 90.8% respectively.

Natural Gas Development

Conventional Gas  Sinopec adhered to the strategy of achieving high yields with fewer wells and pursuing profitable development, solidified the foundation for the stable production of major gas fields as Puguang, Yuanba, and Daniudi, pushed forward the construction of production capacity in areas like Shunbei Area II, marine facies in Western Sichuan, and offshore regions, and developed a number of difficult-to-exploit reserves, including the Xujiahe Formation in Western Sichuan, the concealed narrow channels in Zhongjiang, and the complex high-water-cut tight gas reservoirs in Dongsheng. Throughout 2024, new production capacity of 4.60 billion cubic meters was established, 28.97 billion cubic meters of gas was produced, an increase of 1.76 billion cubic meters.

Shale Gas  Sinopec strenuously advanced the three-dimensional development and adjustment of the Fuling shale gas field, facilitated the rolling evaluation and production construction of the normal-pressure shale gas in Wulong-Daozhen and Hongxing, as well as the deep-layer shale gas in Dingshan and Yongchuan, and pushed forward the evaluation and well tests of deep-layer shale gas in areas as the Silurian system in Xinchang-Dongxi, the Permian system in Puguang, and the Cambrian system in Jingyan-Jianwei. Throughout the year, new production capacity of 2.71 billion cubic meters was established, and 10.15 billion cubic meters of gas was produced.

Coalbed Methane  We continued to manage the adjustment, potential tapping and rolling production of coalbed methane in southern Yanchuan, carried forward the evaluation of the deep coalbed methane in Daniudi. Throughout 2024, new production capacity of 0.11 billion cubic meters was established, and 0.44 billion cubic meters of gas was produced.