Area Drilling

ChinaShell Exploration (China) Ltd. will drill and test two wells on the Changbei block in the Ordos basin under an agreement with PetroChina Co.'s subsidiary Changqing Petroleum Exploration Bureau.Changqing, which operates in northwestern China, plans vertical and horizontal sections in both wells to help evaluate commerciality of a field. The $4 million project, to start in July, is part of Shell and PetroChina's larger program involving production of gas on the Changbei block, laying a pipeline, and development of gas markets in northern and eastern China. Overall project cost is $3 billion.China National Petroleum Corp., parent of PetroChina, and Shell signed a contract last S...

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