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.
Alan Petzet | Chief Editor Exploration
Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.
Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.
