China's Economic Planners Approve Shale Project

BEIJING – China's top economic planning body has approved a shale-oil exploration project between China National Petroleum Corp., the country's largest energy producer, and a foreign partner in the northwestern Xinjiang Uyghur autonomous region, it said Monday on its website.

The National Development and Reform Commission approved the project in November. It didn't name the foreign company involved in the joint venture, which is located in the Malang block in the Santanghu basin.

CNPC-controlled PetroChina Co. was in talks with Royal Dutch Shell PLC and Hess Corp. about forming a joint venture to develop shale oil in Santanghu, CNPC said in an in-house newsletter earlier this year.

The Turpan-Hami Oilfield Co., a unit of PetroChina, had received approval to develop shale oil in Santanghu with two companies, it said, quoting a company official.

Although the foreign companies would assume all investment and exploration risk for shale oil, all the parties in the joint venture would invest in developing shale oil, CNPC said, without elaborating.

China had an estimated 354 billion barrels of shale oil resources as of 2008, the World Energy Council said. However, China produced only about 7.6 million barrels of shale oil in 2008, it said.
 

 

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Drilling Compliance Specialist
Expertise: Regulatory Compliance
Location: US
 
Vice President of Safety & Health
Expertise: HSE Manager / Advisor|Regulatory Compliance|Safety Officer
Location: Covington
 
IT Application Team Lead (Legal/ Corporate Affairs/ Marketing)
Expertise: Legal|PR / Corporate Communications|Sales & Marketing
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $50.68/BBL 0.35%
Light Crude Oil : $46.75/BBL 1.08%
Natural Gas : $2.73/MMBtu 3.01%
Updated in last 24 hours