BP, China National Petroleum Corp. expand Sichuan Basin shale-gas project

British Petroleum and China National Petroleum Corporation (CNPC) recently signed a second production-sharing contract (PSC) for shale-gas exploration and development in a 386-square-mile area in China's Sichuan Basin, neighboring the exploration area covered in the first contract, signed in March.
 
“We are pleased to be making further progress in our strategic partnership with CNPC and deepening our business in China,” BP Group CEO Bob Dudley said. “This second shale gas PSC in China builds on the successful cooperation we are already seeing with the Neijiang-Dazu PSC signed in March. Combining CNPC’s operational expertise with BP’s technology and experience, we now expect to leverage the synergies between these blocks.”
 
The contracts cover exploration, development and production, and both stipulate that CNPC will operate the PSCs.
 
“CNPC and BP's existing cooperation covers various areas, including upstream and retail business in China, overseas upstream exploration and development, and international trading,” CNPC Chairman Wang Yilin said. “Building upon the framework agreement on strategic cooperation signed last year, the two unconventional resource PSCs signed this year are manifestations of our deepening cooperation. By leveraging the parties' complementary advantages, CNPC and BP will jointly realize the efficient development of unconventional resources.”