Shaanxi Yanchang Petroleum Group is a Chinese conglomerate mainly engaged in the exploration, production, transportation, and sale of petroleum and natural gas, and in addition the production and sales of petrochemical products. Founded in 1905, it is the fourth largest oil producer in the country. Almost all its reserves and refineries are located in Shaanxi.
In April 2009, Yan Chang Logone Development Holding Company Ltd., a subsidiary of Yanchang inked a production sharing agreement with the state oil company of Cameroon, Societe Nationale des Hydrocarbures. Under the terms, Yanchang will explore and drill one exploration well in the Zina and Makary blocks of the Logone Birni basin, located far north, near N'djamena, Chad. Total S.A. also considered such an agreement but was squeamish about the political risk.
The company acquired a 15% stake in 2010 in Sino Union Energy Investment (Sunpec) which controls four oil exploration blocks in Madagascar. Back in 2008, Yanchang had agreed to a joint venture with Sunpec and Towngas to develop block 3113 with technical assistance from Yunnan Kaiyuan Oil and Gas. The venture was success leading to the discovery of light oil in November 2009. This block along with block 2104 have estimated oil reserves of 5.6 billion barrels and natural gas reserves of 66 billion cubic meters.