(Yicai Global) Dec. 14 -- A China National Petroleum Corp. unit has made a major oil and gas breakthrough at the Qaidam Basin in West China, state-run China News Service reported.
PetroChina Qinghai Oilfield Co. found high yields of hot gas and crude oil at the Lion-58 Well at Central Yingxiongling, which outputs more than two million cubic meters of natural gas per day, making it the country's highest-output single well, the company said yesterday.
Experts from the parent company believe the hydrocarbon reservoir Lion-58 tapped has unusually high pressure levels (pressure coefficient of 2.21), high output and high levels of sulfur (26.3 grams of hydrogen sulfide per cubic meter).
Chinese firms have discovered five ample resources around Yingxiongling. Estimates suggest its natural gas and oil reserves could reach 50 billion cubic meters and 20 million tons, allowing for annual production of up to 2 billion cubic meters of gas and 100,000 tons of crude.
At an average altitude of around 3,000 meters, Qinghai Oilfield is the world's highest. It's also one of the earliest in China and is an important supply base for Qinghai and Tibet.