New XCL (China) Co., Ltd. (hereinafter referred to as New XCL), was registered in Delaware, U.S. in 2003. In February 2007, after purchasing 100% shares of New XCL, Sinochem Group obtained 24.5% interests held by New XCL in Zhaodong Oilfield that is located in Bohai Bay, China. This is Sinochem Group’s first oilfield project in China, marking its first step into China’s upstream market.
Zhaodong Block is located in the area of beach and shallow sea within the plumb line of 5 meters, at the east of Zhao Jiabao Village, Huanghua City, Hebei Province, covering an area of 197 km2.
With great efforts from Sinochem Group and its partners, Zhaodong Oilfield has recorded its output over 1 million tons for 7 consecutive years, keeping average daily yield at 20,000 barrels. By the end of 2010, the crude oil output of the Oilfield had totaled to 53.63 million barrels.
Currently, Zhaodong Oilfield Complex is in the process of facilitating a series of initiatives that will make for stable and high yield of the Oilfield and enhance the overall assets value of the project, such as export of natural gas, oil pipelines going ashore, upgrading of water treatment measures and establishing shore power platform, to produce higher returns to investors.