Core Viewpoint - The article highlights a significant breakthrough in China's energy sector, specifically regarding the "Deep Earth Engineering · Sichuan-Chongqing Natural Gas Base" project, which has discovered a substantial geological reserve of shale gas in the Yongchuan area of Chongqing, marking a new milestone in the country's energy development [2][4]. Summary by Sections Breakthrough in Shale Gas Exploration - China Petroleum & Chemical Corporation (Sinopec) has confirmed an additional geological reserve of 124.588 billion cubic meters in the Yongchuan shale gas field, which has been approved by the Ministry of Natural Resources [2][4]. - The total proven geological reserves of the Yongchuan shale gas field now stand at 148.041 billion cubic meters, showcasing the potential of deep shale gas resources in the Sichuan Basin [4]. Strategic Importance - The Yongchuan shale gas field is located in a complex geological area of the Sichuan Basin, with the main section buried deeper than 3,500 meters, making exploration challenging [4][5]. - The development of shale gas is crucial for ensuring energy security in China, which has a resource profile characterized by "rich coal, poor oil, and scarce gas" [7]. Growth in Shale Gas Production - In 2022, China's shale gas production exceeded 25 billion cubic meters, accounting for 10% of the total natural gas output, which reached 2,464 billion cubic meters [8]. - The country has significant shale gas resources, with a recoverable resource estimate of 21.8 trillion cubic meters, ranking first globally, although the current exploration rate is only 4.79% [7][8]. Future Development Plans - Sinopec plans to continue advancing shale gas development in the Sichuan Basin, aiming to enhance the recovery rate and production efficiency of gas fields [5]. - The company has achieved over 1,200 national patent authorizations related to key technologies in the natural gas industry, which are expected to support cost reduction and efficiency improvements in shale gas production [8].

Performance Overview - ADNOC Drilling reported Q2 2025 revenue of $1.197 billion, exceeding market expectations of $1.172 billion[2] - Adjusted net profit for Q2 2025 was $351 million, higher than the anticipated $345 million[2] - EBITDA margin for Q2 2025 remained stable at 46%, aligning with market expectations[2] Fiscal Year Guidance - The revenue guidance for FY 2025 has been raised to a range of $4.65 billion to $4.8 billion, up from the previous range of $4.6 billion to $4.8 billion[3] - Net profit guidance for FY 2025 is now projected between $1.375 billion and $1.45 billion, compared to the prior range of $1.35 billion to $1.45 billion[3] - Capital expenditure guidance for FY 2025 remains unchanged at $350 million to $550 million[3] Dividend Policy - ADNOC Drilling aims for a minimum annual dividend growth rate of 10% over the next five years, with FY 2025 dividends expected to reach at least $867 million[4] Unconventional Projects - The company has eight drilling rigs operational in its unconventional projects, with a potential EBITDA margin of over 20% in the long term[5] - Final investment decision (FID) for the second phase of unconventional projects is expected by the end of FY 2025 or early FY 2026[5] Growth Strategy - ADNOC Drilling plans to increase its total number of drilling rigs from 149 to over 151 by FY 2028, with a target of 190 rigs by FY 2030[6]