Xinjiang Oil Province is located in Junggar Basin in northern Xinjiang Uygur Autonomous Region. More than 20 oil and gas fields have been developed in this province.
On October 31, 1955, an industrial oil flow was obtained from well Ke-1 in Heiyoushan area at the northwest edge of the Junggar Basin, marking the discovery of the Karamay Oilfield. In 1958, development of the Karamay Oilfield was launched. Karamay Oilfield remains the largest one of its kind in Xinjiang. Its heavy oil reserves account for 16.2% of total crude oil reserves.
In 2008, we drilled 265 wells and put 196 oil wells into production in the Xinjiang Oilfield as part of its pilot redevelopment test, boosting its productivity by 204,300 metric tons. The ultimate recovery rate of the conglomerate reservoirs at Kexia formation in Karamay can be increased from 30%-40% to 40%-50%.
In 2008, Xinjiang Oil Province produced 12.22 million tons of crude and 3.42 billion cubic meters of natural gas.
Mahe Gas Field
Mahe Gas Field is located in southern edge of the Junggar Basin, with total reserves of nearly 30 billion cubic meters, and is by far the largest uncompartmentalized gas field discovered in the Junggar Basin. On September 22, 2006, a high-yield gas flow of 540,000 cubic meters per day was obtained from well Mana-1 drilled at Manas anticline in the southern edge of the Junggar Basin, marking the discovery of the Mahe Gas Field.
In December 2007, productivity construction of Mahe Gas Field was completed, achieving a daily output of 1.5 million cubic meters.