Shell and CNOOC Study Bohai Bay Gas Development
CNOOC Limited has signed a Joint Study Agreement with Shell Exploration China Limited to examine options and plans for developing oil and gas reserves in the Bonan Block of Bohai Bay.
The Bonan Block is comprised of several oil and gas fields. Two key structures, Bozhong 26-2 and Bozhong 28-1, and the other 3 fields hold a recoverable reserve of more than 160 million barrels of liquid and around 300 billion cubic feet of associated natural gas. The Block is close to several metropolitan areas of Shangdong Province.
Under the terms of the agreement, CNOOC and Shell will focus on how best to commercialize natural gas reserves contained in the block. "Shangdong is thirsty for incremental gas supply. The Bonan Block is ideally located. Shell is a very strong partner in gas market development. We are confident of an optimal commercialization plan being derived from the study," commented Mr. Fu Chengyu, the President of the Company. "The monetization of the gas cap will undoubtedly enhance the value of the fields' development."
The study is a part of strategic alliance between Shell and CNOOC that focuses on gas market development in coastal regions of China.