Tarim Oilfield lies in Tarim basin of southern Xinjiang, which is 1400 km long in east-west and 520 km wide at most in north-south, covering an area of 560,000 km2. It is the largest inland basin in china.

Oil and gas exploration in Tarim begun and was undertaken by Sino-Soviet Union Petroleum Corporation Ltd. in 1952. Fifty years have pasted since then. It was discovered by the commercial oil flow found in well Ke-1 on Oct.9, 1958. As of the end of 1998, 15 fields in various size had been discovered, including 6 fields with oil and gas reserves over 5000×104t ( oil ) and 300×108 m3 （gas） respectively ( Lunnan, Tazhong-4, Yaha, Yingmaili-7, Hetianhe and Kekeya). There are various oil bearing areas of 275.8 km2 proven in total with an OOIP of 2.95×108t ( including gas condensate) and gas-bearing area of 263.13 km2 with an OGIP of 2188.61×108 m3 (including associated gas) .

Its oil production has been increasing at a growth rate of 41 ×104 t/a from 3.4 ×104 t/a at the beginning of the exploration campaign in 1989, ranking the No.1 among onshore oilfields in China in terms of growth amplitude. During exploration campaign over 13 years, six oil production bases had been built up, including Lunnan, Tazhong, Donghe, Yaha, Hade and Kekeya, with an accumulative production of 37.15 ×106 t, an revenue over 400X108 RMB and a tax of 150X108 RMB levied. During its exploration venture, Tarim oilfield has made an important contribution to the development of national economy in advance.

Since the campaign 13 years ago, Tarim Oilfield Company has insisted on the development policy of “High production with less and widely spaced wells and high efficiency with less manpower”, enabling ongoing breakthrough in oil and gas development. This year, the oil production up to one million tons is realized in only 44 producers, over 540 wells less than the average number in the Chinese onshore oilfields. Less than 700 employees engage in oil development and production to realize a per capita production more than 7000 tons, far more than the average of onshore oilfields in China. The first desert oilfield with highly automation in China– Tazhong 4 has been established. And Yaha condensation gas field - developed utilizing ultra-overpressure gas recycling, the largest one in China and one of very few even in the world has been brought into being. The annual production in Lunnan oilfield has been stable at 9 ×105 t consecutively for ten years although water cut is rising.

As of 26th Dec. 2002, the oil production in the oilfield was 5.006 ×106 t in the same year, the first time to breakthrough 5 ×106 t/a, becoming the sixth large onshore oilfield in China.

Tahe Oilfield in Tarim Basin

Tahe oilfield is located in the west-southern Arkekule salient of Shaya uplift in the northern Tarim basin, Xinjiang. A commercial oil flow during testing of Carboniferous formation and good oil & gas showing from Ordovician formation in well Sha 3 were obtained in Oct. 1990, leading to the discovery of Tahe oilfield. Since then, continuous study and intensified exploration have enabled the oil & gas bearing area found continuously. As of 2001, the area under control was up to 1000 km2 with an accumulative proven OOIP of 2.5×108 t (equivalent oil) and possible reserves of 3.5 ×108 t ( equivalent oil), making the oilfield as the first large Paleozoic oilfield with reserves over 1×108 t in China. Its annual oil production increased from 5 ×105 t/a in 1998 to 2.57 ×106 t/a in 2002.

At present, there is still much development potential for extension of oil and gas bearing area in the north, east and west. The number of oil bearing zones is increasing with oil found in the upper, middle and lower parts of Lower Ordovician formation and high yield pay zone found in the middle part of Upper Ordovician formation as well. The reservoirs have various lithology such as limestone, dolomite, organic reef, sandstone etc. The proven reserves in the oilfield has rapidly increased since 1998 with an average growth rate per year of 4X107 – 5X107 t equivalent oil. The accumulative proven reserves are expected to be 3.5 X 108 – 4X108 t equivalent oil with an annual oil production of 500 X 104 t in 2005 while 10 X 108 t equivalent oil with an annual oil production of 800 x 108 – 1000 X 108 t in 2010.