Sinopec, the country's second largest oil company, is set to launch a research program on marine-facies oil and gas exploration, sources familiar with the situation have told China Daily.
About 10 laboratories will be built at an investment exceeding 1.5 billion yuan (200 million U.S. dollars), an insider close to the program said.
Marine facies, or geologic fossilized mineral content, are basins from ancient oceans. The resources in China can reach about 37 billion tons oil equivalent - or a third of the country's total reserves - said Kang Yuzhu, a senior researcher with Sinopec Exploration & Production Research Institute.
"Marine facies contribute to the bulk of the oil and gas discoveries from a global perspective. It is not the case in China, however," said Kang, adding that only less than 10 percent of the resources have been discovered.
It was only after Sinopec discovered the Tahe oilfield in the Xinjiang Uygur Autonomous Region, did Chinese oil companies start to realize the potential of marine facies; and Sinopec is at the head of the exploration pack since most of the firm's oil and gas assets belong to marine-facies structure, Kang said.
Jin Zhijun, deputy chief geologist of Sinopec, estimates that half of Sinopec's reserves are located in marine facies.
"We will conduct the research program in close collaboration with academic organizations across the country, such as the Chinese Academy of Sciences and leading universities," Jin said.
The research will study blocks in northeastern and northern China, Xinjiang, and Hunan, Hubei and Sichuan provinces, according to Kang.
Source: China Daily
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