Shell updates Changbei, other projects in China

By OGJ editors

Shell and China National Petroleum Corp. have amended the production sharing contract that covers the 1,693 sq km Changbei tight gas block in China’s Ordos basin to cover an extended development phase.

The amendment adds scope to develop more tight gas sands and further develop the already producing main reservoir, Shell said. Subject to government approval and pending the outcome of the appraisal campaign, the new development project could increase the current production plateau of 320 MMscfd of gas. Shell will continue as operator.

Elsewhere in China, Shell and PetroChina have agreed to appraise, develop, and produce tight gas in the Jinqiu block in central Sichuan Province under a 30-year PSC in which Shell has 49% interest. The PSC expires in 2040. Gas production at Jinqiu began in September 2011.

Also in Sichuan, Shell and PetroChina are assessing shale gas opportunities in the Fushun-Yongchuan block. They are also assessing coalbed methane opportunities the Ordos basin, where Shell has an agreement to evaluate resources in North Shilou.

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