In 2020, we added 130 million tonnes of proven oil reserves, 208 million tonnes of controlled oil reserves, and 210 million tonnes of predicted oil reserves; the newly added natural gas proven reserves were 375.6 billion cubic meters, controlled reserves 167.5 billion cubic meters, and predicted reserves 281.6 billion cubic meters. The annual production of crude oil was 35.144 million tonnes, an increase of 13,000 tonnes; the production of natural gas was 30.28 billion cubic meters, an increase of 690 million cubic meters. The newly-built crude oil production capacity was 2.538 million tonnes; the newly-built natural gas production capacity was 5.92 billion cubic meters, an increase of 2.43 billion cubic meters.

Oil and Gas Exploration

We made 5 key breakthroughs, 8 major breakthroughs, 6 new breakthroughs, and 17 commercial discoveries in oil and gas exploration, exceeding the annual reserve target.

In terms of oil exploration, a major breakthrough was made in the Shunbei New Area, with 81.72 million tonnes of additional predicted reserves. Important breakthroughs were made in the Paleogene in the eastern slope zone of the Bay in Jiyang Depression, and new types Dongying Depression new area. We explored a new place for increasing reserves in the “three new” areas of the old oilfield.

In terms of conventional gas exploration, a major breakthrough was made in the risk exploration of the new Cambrian system in eastern Sichuan, and the trap resources in the Fuling exploration area were evaluated at 126 billion cubic meters. A large-scale commercial discovery was achieved in the Leikoupo Formation in western Sichuan, with a total of 114 billion cubic meters of proven reserves; an important breakthrough was made in the new Permian system in southwestern Sichuan, with an additional estimated reserves of 78.3 billion cubic meters. New breakthroughs were made in the new strata of Puguang marine and continental facies. New discoveries were made in the Paleozoic of Southern Hubei, Songnan volcanic rocks and the offshore area.

In terms of unconventional oil and gas exploration, major breakthroughs were made in the Jurassic continental shale oil and gas exploration in southeastern Sichuan, and in shale oil exploration in the Jiyang and Boxing Depressions with 2 billiontonne confirmed shale oil resources. A major breakthrough was achieved in the exploration of atmospheric shale gas in southeastern Sichuan. We confirmed the resources of 268.8 billion cubic meters and 191.4 billion cubic meters in Wulong and Daozhen synclines respectively. The first large-scale commercial discovery of atmospheric shale gas in China was achieved in Nanchuan District, Chongqing, adding 191.8 billion cubic meters of proven reserves.

Oilfield Development

The crude production capacity building was advanced efficiently. The natural decline rate of mature oilfields was steadily reduced, and the annual crude oil production increased by 13,000 tonnes.

In terms of increments, the newly increased producing oil reserves for the year were 91.12 million tonnes, an increase of 2.23 million tonnes. We efficiently completed the production capacity of one million tonnes in Shunbei field, and continued to expand the scale of cooperative production of difficult-to-use reserves in Shengli Field. Solid progress were made in the production capacity construction of Junggar Basin Western Edge and Jiyang fields, and the newly-built crude oil production capacity was 2.538 million tonnes.

In terms of inventory, we strengthened fine description, fine water injection, and fine potential tapping, increased basic investment for stable production, optimized the injection and production structure of water drive reservoirs, strengthened the entire thermal management of thermal heavy oil reservoirs recovery, and improve the quality of water and gas injection in fractured vuggy reservoir, improved the tailored management of chemical flooding reservoirs, implemented demonstration project of heterogeneous combination flooding to enhance the recovery rate, and increased efforts in applying technologies to enhance the recovery rate. The annual natural decline rate was 10.2%, 0.1 percentage point lower.

Natural Gas Development

In terms of conventional gas, we actively promoted production capacity construction in new areas such as the western Sichuan gas field, the mid-shallow layer in western Sichuan, Dongsheng, and Northeast Longfengshan, and continued to stabilize the production of major gas fields such as Puguang, Yuanba, and Daniudi. New conventional gas production capacity was 2.52 billion cubic meters, an increase of 750 million cubic meters. And the gas production was 21.44 billion cubic meters.

In terms of shale gas, Sinopec steadily promoted the production capacity construction of the Weirong shale gas field, accelerated the rolling production capacity building of Nanchuan shale gas, continued to promote the three-dimensional development and adjustment of the Fuling shale gas field, and built a new shale gas production capacity of 3.4 billion cubic meters throughout in the year, an increase of 1.68 billion cubic meters. Gas production was 8.46 billion cubic meters, an increase of 1.1 billion cubic meters.

In terms of coal bed methane, we continued to promote the fine drainage of the Yanchuan South coal bed Methane Field, producing 380 million cubic meters of gas in the year.