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CNPC's giant Mahu discovery highlights China's oil challenge

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Report summary

On 1 December, CNPC announced details of a giant discovery in the Mahu area of the Junggar Basin, in China's far- western Xinjiang province. Oil-in-place volumes are now estimated at 520 million tonnes or 3.8 billion barrels. Unlike shale or tight oil resource plays, Mahu is considered a conventional discovery, with defined source rock and reservoir layers. But, the field will require unconventional techniques such as hydraulic fracturing and horizontal drilling to maximise recovery.

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