Sinopec, BP in Talks on Shale Gas Exploration in China

BEIJING (Dow Jones), Jan. 18, 2010

China Petrochemical Corp., or Sinopec Group, and BP PLC are in talks to cooperate in shale gas exploration and development in China, Sinopec said Monday.

"The talks are going smoothly," Sinopec said in its official newsletter, "this move could accelerate development in unconventional oil and gas fields with the help of foreign advanced conception and technology."

Sinopec has charted 2,000 square kilometers in Kaili, Guizhou province, in southwestern China and 1,000 square kilometers in Huangqiao, Jiangsu province, in eastern China as potential cooperation blocks, it said.

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