Sinopec Exploration Southern Co. said it signed an agreement with ConocoPhillips for joint research regarding shale gas exploration, development, and production in Qijiang, Sichuan basin.
“This cooperation will be of great significance to the general evaluation on the exploration potential of the marine Paleozoic shale gas in the southeast Sichuan area and will help improve Sinopec’s technology in the exploration and development of shale gas,” Sinopec said in a statement on its web site.
Financial details were not disclosed. ConocoPhillips confirmed it agreed to a joint unconventional oil and gas development study with Sinopec. No other details were given.
“ConocoPhillips remains interested in becoming involved in unconventional oil and gas developments in China,” a company spokesman in Houston told OGJ.
The US Energy Information Administration estimates China has 145 trillion cu m of recoverable shale-gas resources in Sichuan and Tarim basins.
China National Petroleum Corp. (CNPC) and Shell China Exploration & Production Co. Ltd. signed a production-sharing contract for shale gas exploration, development, and production on the Fushun-Yongchuan block in China’s Sichuan basin (OGJ Online, Mar. 20, 2012).
Shale gas exploration and exploitation in China is still at an early stage although China is vigorously promoting shale gas development (OGJ, Mar. 5, 2012, p. 60).
Shell and CNPC also work together on tight gas projects in China. The CNPC-Shell shale gas PSC, subject to government approval, covers 3,500 sq km.