Approved by the National Energy Administration in August 2022, the Shengli Jiyang Shale Oil National Demonstration Zone is China’s third national-level shale oil demonstration zone after Xinjiang’s Jimsar and Daqing’s Gulong, and the first established in a continental rift basin. It is located in Shandong Province.

The company has innovated and developed a series of integrated technologies for the zone, including:

● Geology-engineering integration for accelerated drilling

● High-temperature resistant, multi-scale sealing synthetic-based drilling fluid

● Full-process fine managed pressure drilling in narrow window formations

● Efficient cementing of shale oil horizontal wells

● Ultra-long core sampling in shale oil reservoirs

● Network fracturing with hybrid fractures in horizontal well

● Integrated evaluation of dual sweet spots using logging and mud logging data

These technologies have robustly supported the breakthrough in Shengli Jiyang shale oil development.

Drilling: To address challenges such as high temperature and pressure, well-developed fractures leading to poor tool stability, and simultaneous kicks and losses in the rift basin, key technologies including rotary steering with surface cooling and managed pressure drilling were iteratively optimized. This resulted in a premium and rapid drilling system that enhanced performance. The average drilling cycle was reduced to 32.8 days in 2024, with the shortest cycle reaching 17.05 days in 2025.

Surface and Downhole Logging: Through "Precise Dual Sweet Spot Evaluation," an interpretation conformity rate of 99.3% was achieved, enabling accurate layer selection, target positioning, and optimized fracturing stage selection. This facilitated differentiated fracturing strategies in four sags of the Shengli shale oil area, with the maximum estimated ultimate recovery (EUR) per well reaching 95,000 tons.

Fracturing: Building on experience where re-fracturing in shale gas achieved 75% of the initial fracturing production, the development approach was optimized toward “large well spacing, high fluid volume, and high proppant volume”. Guided by the principle of "thoroughly draining the reservoir," precise, extreme limited-entry fracturing was tested using "single perforation as a cluster, 10-meter stages." The application of "coiled tubing electrically controlled perforation and precise fracturing" technology enabled intensive, zero-interval fracturing.

Operations Management: The “Dual Platform Manager” system was deepened, and intensive multi-well pad deployment was implemented. Efficiency gains achieved through shared management, personnel, equipment, materials, and drilling fluid resources. Batch drilling operations were promoted, saving time on drilling fluid changeovers and tank cleaning, while optimized overall BOP installation time shortened the intermediate completion cycle.