China National Petroleum Corp. and Royal Dutch/Shell Group have signed a letter of intent for exploration and development in China.
The agreement represents an acceleration of efforts by China's oil industry to expand cooperation with foreign companies, Xinhua News Agency quoted CNPC as saying.
CNPC and Shell later will discuss scope of cooperation, followed by contracts for specific projects.
Among areas of focus will be selected acreage in shallow waters off China's eastern coast, enhanced oil recovery in existing fields, and heavy oil development. Also on the table are possible cooperative ventures in downstream oil and gas operations.
In 1991, Beijing and Shell signed a contract covering construction of a joint venture refinery at Huizhou (OGJ, Aug. 5, 1991, Newsletter).
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