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SINOPEC Zhongyuan Oilfield Company

Zhongyuan Oilfield Company of SINOPEC (hereinafter referred to as “Zhongyuan Oilfield” or “the Oilfield”), with its head office located in Puyang City of Henan Province, mainly engages in the areas of oil and gas exploration & development, oil refining and petrochemicals production and sales. Its main exploration and development activities are carried out in Dongpu Depression, Puguang Gas Field and Inner Mongolia Exploration Area. Guided by the Scientific Concept of Development, Zhongyuan Oilfield, in last several years, has been strengthening innovation of technology and management, as well as human resource development, meanwhile persistent efforts have been made in pushing forward the refined and economic exploration in Dongpu Depression, in maintaining the safe and highly-efficient development in Puguang Gas field, and in proving more recoverable reserves and enhancing oil production in Inner Mongolia. As a result, a well-balanced operation pattern featuring the coordinative development of these three oil & gas production areas has thus formed. Up to now, 131 million tons of crude oil and 47.2 billion cubic meters of natural gas have been produced. In the year 2011, Zhongyuan Oilfield acquired 12.57 million tons of newly proven geological reserves, produced 1.11 million tons of oil equivalent, which enabled the Oilfield to join the rank of oil & gas fields with production of over 10 million tons. And the Oilfield realized revenue of 26.9 billion RMB. 

Dongpu Depression covers an area of 5300 km2 between Shangdong and Henan province. Up to now, 593 million tons of geological oil reserves and 136.502 billion cubic meters of geological gas reserves have been proved in this area, For years, Zhongyuan Oilfield has always been regarding reservoir management as the theme of its operations, deepening detailed studies on complex faulted-reservoir groups and structural lithologic oil and gas exploration,and strengthening the efforts in detailed description of reservoirs and adjustment of production well patterns, as well as combined application of technologies. With the implementation of these measures, the Oilfield achieved a yearly increase of over 10 million tons of proven geological reserves in recent five consecutive years, at same time the degree of water flooding control and employment has seen a remarkable increase while natural production declination has been reined effectively, thus increasingly consolidating the foundation of stable production. It is expected that, Dongpu Depression can maintain the annual production of 3 million tons of oil equivalent during the period of the Twelfth Five Year Plan. Exploration & evaluation were carried out actively in 2011, and exploration on tight sandstone reservoirs has seen progress, which shows the good prospect of oil & gas development in these fields. 

Puguang Gas Field, with an area of 1116 km2, lies in the northeast of Sichuan Province. Boasting a proven geological gas reserve of 412.2 million cubic meters, it is the largest and richest marine-phased carbonate gas field ever discovered in China, featuring a high content of H2S and CO2. Puguang Gas Field was completely put into commercial production in June of 2010 before which 39 gas production wells had been completed, 16 gas gathering stations and 6 sets of gas purification units had been placed into use, plus that, an exclusive railway line for solid sulfur transportation had also been built. As a result, the whole gas field is able to operate with an annual production capability to produce 10 billion cubic meters of natural gas, to process 12 billion cubic meters of natural gas and produce 2.4 million tons of solid sulfur. Puguang Gas Field produced 8.04 billion cubic meters of natural gas and 1.6 million tons of sulfur, which makes the Field the largest sulfur production base in China. 

With 21 licensed areas, the Inner Mongolia Exploration Area covers an area of more than 35,600 km2. Through intensive exploration, favorable production trends have appeared in terms of good oil show during drilling and well testing. 22.19 million tons of geological reserves have been proved in Baiyin Chagan and Chagan Basins; breakthrough was seen in the pilot test of steam stimulation for the low-temperature and ultra heavy oil. And progress has been made in Erlian Zhongkang Cooperation Block. Up to now, 110,000 tons of annual oil production capacity has been established, making the area a very important resource replacement for the future development of the Oilfield. 
The Refinery sector of the Oilfield is capable of processing 1.2 million tons of crude oil each year with 21 kinds of products belonging to 4 categories. Since 2010, the gasoline hydrogenation unit with the capacity of 250 thousand tons per year and the liquefied gas post-processing unit with the capacity of 120 thousand tons per year have been put into production. The Refinery now has more than ten processing units that including atmospheric distillation, catalytic cracking, special oil, light hydrocarbon processing, liquefied CO2 recovery and etc. It is also equipped with exclusive railway, product oil depots and other accessory facilities. The Refinery, being the first plant in China that successfully recovered CO2 from the catalytic unit flue gas, applied such processed CO2 in the field test of enhance recovery and did see good result. 

The problems experienced in exploration and development of Dongpu Complex Faulted Reservoir and Puguang Highly Sour Gas Field, which have been managed by Zhongyuan Oilfield, are truly challenging world-class difficulties. The Oilfield, keeping in mind the idea that science and technology are the primary productive forces, has been strengthening original and integrated innovation in the fields of fundamental research, key technology projects, application & promotion of technologies and strategic pre-research, and as a result of the above efforts, has brought into reality 3 categories of fine exploration technologies and 14 items of key technologies on refined development of aged oilfield. 

Breakthroughs have been made in the research of several state-level key scientific projects the Oil Field undertook --- upon which two theories have been founded, eight sets of correspondent technologies developed, and four professional & technical regulations compiled; the Oil Field has also obtained 14 national patents of which many achieved the leading status at home and abroad; the above-mentioned projects undertaken by the Oilfield are as follows: The Safe & Highly-Efficient Development Technology of High Sulfur Content Gas Reservoir; The Model Project---Construction of Puguang Large Scale Highly Sour Gas Field in Sichuan Basin; and Research on the Law of Oil & Gas Enrichment in Dongpu Depression and the Increment of Reserves. 

Zhongyuan Oilfield takes ‘perfecting operation mechanism and improving management’ as the goal of its long-term pursuit, and has established a special management mode of its own. It engages to improve the five operating mechanisms regarding reservoir management and the ‘Oil Company’ management model intended for running Puguang Gas Field; meanwhile, it also steadily deepens the long-term mechanisms of total cost control and total cost & budget management, and earnestly absorbs constructive advice on improving oil field management. At same time, the Oilfield has been making every effort to improve what’s called a “Five in One” supervision system which incorporates “interior control, audit, monitoring, inspection and law application” into one. The overall production and management activities have thus been made more and more efficient and better regulated. 

Zhongyuan Oilfield exercises the belief that the development of material infrastructure should parallel the ethical and cultural progress, and has made great achievements in the field of ethical and cultural construction. It performs the study and discussion of the Scientific Concept of Development and puts the Concept into practice in a down-to-earth manner. It also carries out activities encouraging all employees to make accomplishment in their daily work by “Comparing, Learning, Competing, Helping and Winning” to bring into being a management system of “Double Enhancement” (namely to enhance the competence of either the enterprise or the individual employee). The Oilfield spares no efforts to implement 6 campaigns which are designed to promote the competence of employees and enterprise, to provide its employees with better living conditions, to maintain the social security, to uplift spirit and morality of employees, to protect all legal rights of employees and let all employees and their families enjoy the benefit of the Oilfield development. Those campaigns are referred to as “Project of Quality, Environment, Security, Prosperity, Sunshine and Well-being” which maintains normal oil& gas production and team stability, and ensures the social security as well. The Oilfield has thus been awarded with many honors, such as “ National Role Model in Ethical And Cultural Progress”, “the May First (5.1) National Award for Labor”, “ Role Model in Ideological & Political Work of Henan Province” and etc. 

Zhongyuan Oilfield has now marched into a new period, enjoying a favorable situation in all areas of its development. It shall, according to the strategic plan of SINOPEC Group, proactively change the developmental approach as directed by the concept of scientific development to vigorously promote technology advancement, management innovation and human resource development, and to implement the resource replacement strategy in depth; It shall also place stress on improving quality and profitability, and take all factors into account in coordinating “ six relations” – the relation between the development of Dongpu Base and that of the newly developed areas of Puguang Gas Field and Inner Mongolian Exploration Area to ensure a coordinated progress; the relation between oil and gas exploration and petroleum engineering services to bring about a mutual advancement; the relation between refined management and HSE and energy consumption control to make certain they both are performed in an orderly manner; the relation between scientific innovation and human resource development to promote a common improvement; the relation between party organization building and that of corporate culture and operation management to create an environment in which the three are able to merge as a complete whole; and the relation between economic benefits and employees’ interests to achieve a synchronous lift. 

In the period of the Twelfth Five Year Plan, the Oilfield plans to reach the targets of 60 million tons of proven geological oil reserves, 40 billion cubic meters of proven geological gas reserves in Puguang Area, and to establish an annual production capacity of 13 million tons of oil equivalents. And the Oilfield shall commit itself in pursuing a better management mechanism which is characterized by objective and regularity, quick response, highly efficiency, and complete supervision. 

Address: 277#, Zhongyuan Road, Puyang City, Henan Province, PRC. 
ZIP: 457001 
TEL:+86 (393) 4822172;+86 (393) 4822301 
FAX:+86 (393) 4828300 
EMAIL ADDRESS:xujljb.zyyt@sinopec.com