Abstract:

With the reform of economic system and changes in market environment，Xinchun Oil Recovery Plant of Shengli
Oilfield is faced with increasingly fierce competition. It is urgent for Xinchun Oil Recovery Plant to set up a scientific management
system. The plant undertakes the exploration task of Shengli Oilfield in Xinjiang which mainly involves low-grade
reservoirs like extra-heavy oil in shallow layer，deep-seated low permeable reservoirs and crack-type volcanic reservoirs. To
cope with low oil price and low working efficiency，the plant has carried out a series of management innovations. Firstly，
based on the advanced management experiences from other oil companies，they implement flat management and institutionalized
management. Secondly，they build a new contracting mechanism including outsourcing and project-based hiring. Thirdly，
they promote the construction of company culture，aiming to build an outstanding business team. Finally，they put great emphasis
on core technology research and develop technologies like horizontal well development with extra heavy oil in shallow
layer and steam huff and puff technology. With the above innovations，the plant promote the development efficiency of the
low-grade reservoirs with the lowest cost of ton oil compared with development of other same-type reservoirs

Key words: Shengli Oilfield in Xinjiang, Xinchun Oil Recovery Plant, enterprise management innovation, extra-heavy oil in
shallow layer, HDNS development technologies