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BP and China National Petroleum Corporation sign BP’s first shale gas production sharing contract in China

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BP and China NAtional Petroleum Corporation signed a production sharing contract (PSC) for shale gas exploration, development and production in the Neijiang-Dazu block in the Sichuan Basin, china.                                

 

Witnessed by BP Group Chief Executive Bob Dudley and CNPC Chairman Wang Yilin, the contract is BP’s first shale gas PSC in china and covers an area of approximately 1,500 square kilometers. CNPC will be operator for this project.

 

Dudely said, we re pleased to reach this signicant milestone as part of our strategic partnership with CNPC, building on our successful cooperation in and outside of china. We are looking forward to working together with CNPC on technology, operational and subsurface techniques in unconventional resources. We will bring our worldwide experience to our first conventional gas project in onshore china with CNPC. We will combine this with CNPC’s knowledge and experience to bring gas to china’s growing clean energy market. China continues to be an important part of BP”s portfolio.

 

This PSC is the first achievement from BP and CNPC’s framework agreement on strategic cooperation that was signed last October during the visit tothe UK of President of the People’s Republic of China, Mr.Xi Jinping. In addition to unconventional resources in china, exploration of oil and LNG trading opportunities globally, and carbon emissions trading as well as sharing of knowledge around low carbon energy and management practices.

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