Liaohe Oil Province
- Description: Liaohe Oil Province, the third largest oil field in China, is situated in the lower reaches of the Liaohe River. It began to produce oil in the 1960s. The proven recoverable reserves is over 90 millio
Liaohe Oil Province, the third largest oil field in China, is situated in the lower reaches of the Liaohe River. It began to produce oil in the 1960s. The proven recoverable reserves is over 90 million tons and its controlled-reserves exceeds 100 millions tons.
It is located in the northeast of the Bohai Bay Basin. The north, east and west of Liaohe Oil Province are surrounded by mountains, while the southern part extends into the waters of the Liaodong Bay. A total of 39 oil and gas fields have been discovered in Liaohe Oil Province and 25 have been put into development, with an annual crude productivity of 12 million tons. Liaohe Oil Province is the largest production base for heavy oil, ultra heavy oil and high pour-point oil in China.
On September 9, 1969, a high-yield industrial oil and gas flow was obtained from well Xing-1 located in the western sag of the Liaohe depression, kicking off the mass exploration and development of the Liaohe Oilfield. The major target zone for exploration is the Palaeogene system, where structural, stratigraphic and lithologic reservoirs exist. The produced crude is mainly heavy oil with a small portion of light oil, due to the different layer series and varying depth.
In the 1980s, mature oil fields in the Liaohe area entered the high water-cut stage. Based on waterflooding and huff and puff development which had been applied for many years, CNPC made pilot tests for new development methods such as chemical recovery, SAGD, steam flooding and in-situ combustion drive. The SAGD pilot project proved successful, which increased heavy oil recovery by 30%. Huff and puff combined with
SAGD enhanced the ultimate recovery factor to over 55%. This new production mode is applicable for about 240 million tons of heavy oil in place in Liaohe.
In 2008, SAGD was applied to Block Shu-1 in the Liaohe Oilfield. The block is expected to reach a maximum annual production of more than 2 million metric tons, and the recovery factor may increase from 30% (by huff and puff) to 60%. Steam flooding was adopted for heavy oil recovery at Block Qi-40 in Liaohe, boosting its daily output from 485 metric tons (by huff and puff) to 1,984 metric tons.
In 2008, Liaohe Oil Province produced 11.98 million tons of crude oil.