Chinse CNPC aims to produce 12.4 mln bbls at shale project, according to state media

China's state-owned energy group CNPC aims at producing 1.7 million metric tonnes of shale crude oil or 12.4 millions barrels in the next year as part of a pilot project, according to a report by Xinhua, the state news agency.

The Jimsar Shale Gas Project, located in Junggar Basin, is one of three pilot shale oil projects that state oil companies are trying develop. Other two projects are Gulong, in northeast China, and Jiyang, in east China.

According to Xinhua, CNPC produced 1.011 millions tons of oil at Jimsar this year, which is 7.4 million barrels.

China's shale-gas resources are believed to be massive. Xinjiang, which is rich in oil and gas, alone has more than 3 billion tonnes.

Shale oil is one of the most difficult and expensive types of oil to produce and explore, even though it has huge reserves.

Xinhua reported that China's shale-gas production reached a record in 2014, with more than 4,000,000 tons or approximately 80,000 barrels a day. This is about 2% of China’s total domestic oil production.

(source: Reuters)