Sinopec discovers new shale oil reserve in Sichuan Basin

China Petroleum and Chemical Corp announced on Thursday the discovery of a new shale oil reserve estimated at 100 million metric tons in the Sichuan Basin, a move with strategic significance for the country's energy security.

The discovery is located in Chongqing's Qijiang district. The well achieved high-yield test production of 38.64 cubic meters (about 243 barrels) of crude oil and 10,000 cubic meters of natural gas per day, said the State-owned energy giant, also known as Sinopec.

An overall regional assessment following the well's testing confirmed the substantial new shale oil reserve, underscoring the potential for shale oil exploration and development in southwest China, it said.

Shale oil, an unconventional oil and gas resource, is considered crucial for ensuring long-term stable crude oil production in China.

Sinopec has been increasing its efforts in shale oil exploration and development, having already identified three new large-scale shale oil fields across the nation.

In 2024, Sinopec's annual shale oil output reached 705,000 tons, an increase of 308,000 tons from the previous year.