The Ministry of Land and Resources warned the shale gas circle without detecting: 8 million Sinopec

Abstract Yesterday (November 3), the official information of the Ministry of Land and Resources showed that China Petroleum and Chemical Corporation (hereinafter referred to as Sinopec) and Henan Province in the first batch of two shale gas tendering blocks exploration prospects. Coalbed Methane Development and Utilization Co., Ltd. (hereinafter referred to as...
Yesterday (November 3), the official information of the Ministry of Land and Resources showed that China Petroleum & Chemical Corporation (hereinafter referred to as Sinopec) and Henan Coal Seam in the first batch of two shale gas tendering blocks exploration prospects Gas Development and Utilization Co., Ltd. (hereinafter referred to as Henan CBM) has paid a penalty of approximately 8 million yuan and 6 million yuan for the unconfirmed investment proportion of the survey, and has been reduced by the exploration area.

Sinopec and Henan CBM are the only two successful bidders in the first round of shale gas mining rights bidding. The Ministry of Land and Resources also issued a notice to warn the second round of winning bidders to "circle and not explore" behavior, or to urge the second round of winning bidders to accelerate exploration.

However, it is quite surprising that Sinopec, which has strong financial strength, has been punished for lack of exploration investment. This may mean that domestic shale gas exploration and development still faces many problems.

The "Daily Economic News" reporter asked the Sinopec for this, but did not receive a reply as of the press release.

The two companies were fined 14 million yuan

On July 18, 2011, the Ministry of Land and Resources issued the first two shale gas exploration blocks through the bidding method—“渝黔南川 shale gas exploration block” and “Xiangxiang Xiushan shale gas exploration block”. The exploration rights holders are Sinopec and Henan CBM, and the exploration licenses are valid for 3 years.

According to the documents of the Department of Geological Exploration of the Ministry of Land and Resources at the end of October, during the three-year exploration period, Sinopec’s “Nanchuan Block” completed an investment of 4.3389 billion yuan, which is 73% of the committed investment; the “Xishan District” of Henan’s coalbed methane was completed. The survey invested 1.2684 billion yuan, which is 51% of the commitment. According to the agreement of the shale gas exploration rights transfer contract, Sinopec paid a penalty of RMB 797.98 million according to the proportion of unconfirmed commitments, and reduced the area of ​​“Nanchuan Block” by 593.44 square kilometers; Henan CBM paid RMB 6.0355 million. Gold, the nuclear reduction of the "Xiushan block" area of ​​994.15 square kilometers.

It is understood that the two companies have already paid more than 14 million yuan in liquidated damages, and have prepared an exploration implementation plan based on the blocks after the reduction of the area, and applied to the Ministry of Land and Resources for the registration of the prospecting rights.

“Insufficient penalties for mineral resources exploration are international practices.” Dong Xiucheng, director of the Oil and Gas Industry Development Research Center of China University of Petroleum, told the Daily Economic News reporter, “This is shale gas as an independent mineral, exploration, development and market. The performance of the connection."

Dong Xiucheng believes that the previous exploration and development of traditional oil and gas did not have the concept of bidding, which caused the enterprises to delay the exploration and development after receiving resources, resulting in idle waste of national resources, and the shale gas bidding mode will avoid this phenomenon.

In the view of Lin Boqiang [microblogging], director of the Energy and Energy Collaborative Innovation Center of Xiamen University, the penalty of 14 million yuan of liquidated damages and the reduction of exploration area of ​​1600 square kilometers is not enough. "A similar phenomenon exists not only in the development of shale gas. It exists in many energy fields. Only by increasing the intensity of punishment can we avoid the waste of resources and promote the rational development of the industry."

Limited progress in shale gas development

In fact, despite the two rounds of bidding for domestic shale gas mining, the status quo of shale gas development is still criticized in the industry.

In June 2013 and January 2014, the Ministry of Land and Resources, the National Development and Reform Commission, and the National Energy Administration organized several development progress reports. Only one or two companies have made progress in exploration work, and most companies have not made any substantial progress. .

“The technology of shale gas development in China is not mature, and drilling development requires a lot of money.” Wang Xiaokun, an analyst at Zhuo Chuang Information, told the reporter of “Daily Economic News” that “the current domestic shale gas development, except PetroChina and Sinopec, other companies have not made much substantive progress."

Huaying Shanxi Energy Investment Co., Ltd., a subsidiary of Yongtai Energy, is one of the companies that won the block in the second round of bidding. In July this year, Yongtai Energy staff said in an interview with the "Daily Economic News" that nearly a year and a half past, the block it won is still "under exploration"; in August, the company issued a notice to inform its office. It has the geological reserves of the shale gas block, but at that time, the shale gas project of the Fenggang 2 block in Guizhou completed only one stage of geological exploration.

Wang Xiaokun believes that under the current technical situation, the capital required for shale gas exploration and development is relatively large. In the second round of bidding for shale gas, the main bidders were local enterprises. These enterprises were unable to match the “two barrels of oil” in terms of capital investment. This is also the reason for the large-scale “circle and not explore” situation in the second round of bidding.

The Ministry of Land and Resources issued a fine, which was considered by the industry to be a good warning. The second round of shale gas bidding companies will have to accelerate investment development.

Sinopec did not respond

If the cost of exploration is too high, it can be one of the reasons for private companies and local state-owned enterprises to “circle and not explore”. It may be surprising that Sinopec, which is rich in funds, relatively advanced in technology and has successful experience, is punished.

As early as July 2013, Sinopec owned a high-yield industrial gas flow well with a daily output of more than 100,000 square meters in the shale well in Jiaoshi Town, Fuling District, Chongqing. Up to now, the cumulative shale gas production of the Sinopec Fuling shale gas field has exceeded 1 billion cubic meters. Fuling shale gas is currently mainly supplied to the industrial and civil gas market in Chongqing, and has basically achieved full production and sales.

The reporter asked the Sinopec for the lack of exploration investment, but as of press time, he did not receive a reply.

Lin Boqiang believes that Sinopec is still punished for lack of exploration investment in the case of funds and corresponding technology. The reasons may be multi-faceted. "At least not optimistic about the current development benefits, so the penalty is less than the exploration investment loss. ”

Sinopec’s cost in shale gas exploration has remained high. Earlier, Sinopec said in an interview with the reporter of "Daily Economic News" that in areas with high risk of shale gas exploration, it takes 70 million yuan to press a well; the cost from the well to the gas in Fuling is about 83 million yuan. . Sinopec has invested billions of yuan in the Fuling area. At the same time, due to the complicated geological conditions in China, it is impossible to directly copy the American technology. Therefore, domestic shale gas only costs more than 50 million yuan to explore a well.

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