BP and China National Petroleum Corp. (CNPC) have signed a production-sharing contract (PSC) for shale gas exploration, development and production in the Neijiang-Dazu Block in China Sichuan Basin, BP said in a news release.
The contract is BP’s first shale gas PSC in China and covers an area of about 1,500 sq km, BP said. CNPC will be operator.
In addition to unconventional resources, the framework agreement covers possible future fuel retailing ventures 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, the release said.
BP’s Energy Outlook expects that by 2035 shale gas will account for a quarter of the total gas produced globally and China will become the world’s largest contributor to growth in shale gas production.