Friday 23 March 2012

China and Shell to share shale gas

Oil giant Shell and China's semi-state oil firm CNPC will share their Chinese shale gas activity including exploration and production after a deal announced yesterday.

Shell said it will be the first shale gas Production Sharing Contract (PSC) ever signed in China. Covering the Fushun-Yongchuan block in the Sichuan Basin, the contract area is roughly 3,500 square kilometres.

Peter Voser, Royal Dutch Shell's CEO said: "China has huge shale gas potential and we are committed to making a contribution in bringing that potential into reality."