Exxon Mobil
Corp. (XOM) is currently working with Petrochina Company Ltd. (PTR) to jointly research and develop and unconventional gas
block in the Ordos basin of northern China. The deal has not yet been completed, but the discussions have been going
on since early June of 2010.
In June, 2010, China National Petrolium Corp. (CNPC) signed an agreement with
EnCana Corp. (ECA) to develop shale gas reserves at Horn River, Greater Sierra, and Cutbank Ridge in northeast British Columbia.
EnCana would be operator of all developments, with CNPC investing capital to earn an interest in the assets and gain an advanced
understanding of unconventional gas development through an ongoing sharing of technical knowledge.
In 2006, Newfield
Exploration Company (NFC) began development of two fields in China’s Bohai Bay. In 2009, they commenced oil development
in the Pearl River Mouth Basin in China.
Sinopec Petrochemical Co. Ltd. (SHI) and BP plc. (BP) are in talks to
jointly explore and develop shale gas in China. Sinopec 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.
Shell (RDS-A) has strong relations with China in the natural gas and oil area as well. Dr. Matthias Bichsel delivered
a speech at Shell Projects & Technology Director, at the 9th International Oil & Gas Conference & Exhibition relaying
a positive position for shale in China:
I just mentioned the Changebei project. An intergral part of our work
there was to transfer our tight gas technology and our Drilling The Limit technique to Petrochina. We are
also working with PetroChina to develop two bocks in Sichuan province: the Fushun shale gas field, and the Junqui tight
gas field...I’ve alluded to many more examples of partnership already. Here in China, Shell works in partnership
with all the national oil companies, including CNPC, Sinopec, CNOOC and Yanchang.
With oil prices
hovering at $80 going into the last half of 2010, I think we will find that China’s vast amount of land and prosperous
oil prospects are going to become key areas for companies to explore, in order to stay ahead of the game in this challenging
and ever-growing industry.
