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Shell, CNPC mull gas exploration in Sichuan

Published: 07 Jul 2009 20:50:27 PST

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Jul. 8, 2009 (China Knowledge) - China National Petroleum Corp (CNPC), the country's largest integrated oil and gas company, is in talks with Royal Dutch Shell, a multinational petroleum company of Dutch and British origin, for natural gas exploration in Sichuan Province, sources reported.

An official of the energy department of the Sichuan Provincial Development and Reform Commission said that the institute has not received official notice about the cooperation yet. The official also predicted that the two oil giants will start exploration in Ba Jiao Chang gas field if the deal is done.

The Ba Jiao Chang gas field is located in Yanting County, Sichuan Province and had proven natural gas reserves of more than 30 billion cu m in 2006.

At the beginning of last September, a joint venture, launched by Shell and CNPC, started to explore natural gas in Changbei gas field, which is located in Northwest China and has an average daily output of 10 million cubic meters (cu m) or an annual output of 3 billion cu m.

CNPC and France's Total SA intend to bid for two oil blocks located in the Carabobo region of Venezuela's Orinoco oil belt that have a total of 272 billion barrels of recoverable reserves, China Knowledge reported earlier.

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