Shell, Unocal opt out of Xihu Trough projects off China

Sept. 29, 2004
Unocal Corp. and the Royal Dutch/Shell Group Tuesday reported they have elected not to participate in five contracts to explore for, develop, and market natural gas resources in the Xihu Trough of the East China Sea (OGJ Online, Aug. 21, 2003).

By OGJ editors

HOUSTON, Sept. 29 -- Unocal Corp. and the Royal Dutch/Shell Group Tuesday reported they have elected not to participate in five contracts to explore for, develop, and market natural gas resources in the Xihu Trough of the East China Sea (OGJ Online, Aug. 21, 2003).

China National Offshore Oil Corp. (CNOOC) and China Petrochemical Corp. (Sinopec), each holding a 30% working interest in the contracts, are the other project participants. Unocal East China Sea Ltd. and Shell's Pecten Orient Co. LLC each hold 20%.

The decision not to proceed followed a detailed resource assessment and study of development options.