Yanchang Petroleum: Oil, Gas, Coal, Chemical and Electricity "Five Fingers into a Fist" to Stabilise Growth

On 31 December 2023, Yanchang Petroleum's annual crude oil production reached 11.627 million tonnes, maintaining a steady annual output of more than 10 million tonnes for 17 consecutive years; natural gas production exceeded 8 billion cubic metres, achieving 15 years of consecutive increases in production. The Group's oil and gas equivalent reached 18.018 million tonnes, a record high, ranking steadily in the first echelon of the national oil and gas fields, and playing an important role in the steady growth of industrial enterprises in our province.

In 2023, in the face of the severe situation of international oil prices and chemical prices falling sharply, Yanchang Petroleum has always put the stable growth of the industry in the first place, adhere to the "early planning and quick grasp of the project, safe and efficient steady growth", through all-out efforts to "stabilise the coal, oil, gas", to achieve the quality and reasonable growth. By making every effort to "stabilise coal, expand oil and increase gas", the company has achieved effective improvement in quality and reasonable growth in quantity. In the oil industry, through the strategic adjustment of "fewer wells, more oil", we accelerated the release of high-quality production capacity, and crude oil production increased by 145,000 tonnes year-on-year; we adopted the measures of "expanding imports, supplementing extraction with refining", and continuously improved the processing capacity of our plants, and imported crude oil increased by 468,000 tonnes year-on-year. The year-on-year increase in imported crude oil was 468,000 tonnes, and the year-on-year increase in processed crude oil was 455,000 tonnes. The natural gas industry insisted on steady production in old wells and production in new areas, and the production capacity of gas fields exceeded 10 billion cubic metres. Coal, chemical and electricity industries actively expanded production and improved quality, to make up for the price with the volume, the annual coal production increased by 1.05 million tonnes year-on-year, chemical products increased by 666,000 tonnes year-on-year, the new power generation capacity of 6 billion kWh, the Group's main product output have maintained a positive growth trend. In the product sales side, in the face of weak growth in domestic demand for refined oil products, energy products, downward pressure on the price of the adverse situation, the group adhere to the "market-oriented reform, independent marketing", adhere to the depot and station, strengthen the wholesale and retail synergies, sales of refined oil products in 2023 year-on-year increase of 5.6%. Through deepening strategic cooperation, the jet fuel market expanded to 12 airports in 5 provinces last year, with sales increasing 2.6 times year-on-year. The company also actively undertook the construction of charging piles in the service areas of motorways and ordinary national and provincial trunk roads in Shaanxi Province, and implemented the Yanchang Petroleum "oil, gas and electricity" card business to better meet the diversified travel needs of the public. Adjusting the chemical product structure according to the market demand, 7 high-end chemicals contribute 16% of the output value with 11% of the output. Seizing the market opportunity of "One Belt, One Road", the company opened the "Yanchang No." special train for sea-rail intermodal transport of rubber products, and opened the "Yanchang No." special train for rubber products, and the export volume of tyres increased by 49.6% year-on-year. 49.6 per cent.

In all-out efforts to increase production and sales at the same time, extend the oil focus on the main industry of energy and chemical industry, take measures to promote investment and stable growth, industrial structure showing a new pattern of diversified support. The annual completion of 9 projects, 8 new construction projects, the completion of investment ranked first in the provincial enterprises. Among them, the new crude oil production capacity of 1.05 million tonnes, the new natural gas production capacity of 1.89 billion cubic metres; Kekegai Coal Mine Expansion Phase I Project was basically completed; Fuxian Power Plant Phase I was transferred to commercial operation, and Phase II started construction; Sanyuan Oil Depot Railway Line was completed and put into operation; Yushen 500,000 tonnes/year Coal-Based Ethanol Project produced high-quality ethanol products; and Jiangsu Taixing 600,000 tonnes/year Propane Dehydrogenation Project was driven to success in a single run. In addition, the Group's CCUS demonstration project Ansai 260,000 tonnes/year CO2 oil drive and storage project was completed and put into operation, and the scale of CO2 injection was increased to 410,000 tonnes per annum; the national "Energy Internet" demonstration project of "Zero-Carbon Project" of Yanchang Oil & Gas Field was implemented steadily, and the wind micro-energy network project of 1 GW was launched. The wind and light micro-energy network project is being steadily implemented, and the 6 MW distributed photovoltaic project in Ansai Wangjie is being accelerated, and the construction of "low-carbon" and "zero-carbon" oil and gas fields is taking shape.