BP signs second shale gas deal with Chinese firm

BP signs second shale gas deal with Chinese firm

BP has signed a second agreement for shale gas exploration, development and production with a Chinese company.

The production sharing contract (PSC) with China National Petroleum Corporation (CNPC) covers an area of around 1,000 square kilometres at Rong Chang Bei in the Sichuan Basin.

The two companies signed the first PSC in March this year.

BP expects shale gas to account for a quarter of the gas produced globally by 2035, with China forecast to become the world’s largest contributor.

Bob Dudley, BP Group Chief Executive said: “This second shale gas PSC in China builds on the successful cooperation we are already seeing with the Neijiang-Dazu PSC signed in March.

“Combining CNPC’s operational expertise with BP’s technology and experience, we now expect to leverage the synergies between these blocks. This new PSC clearly demonstrates our continued commitment to invest in projects in China which will deliver long term value to BP to our Chinese partners and most importantly to the country.”