BP on Thursday said it has signed a second production sharing contract (PSC) for shale gas exploration, development and production with China National Petroleum Corporation (CNPC).
The second PSC covers the area of approximately 1,000 square kilometres at Rong Chang Bei in the Sichuan Basin, BP informed in its statement, adding that, as with the earlier contract, CNPC will operate the Rong Chang Bei PSC.
In March 2016, BP and CNPC signed the first shale gas PSC on the adjoining Neijiang-Dazu block.
In addition to unconventional resource exploration and development, the framework agreement covers possible future fuel retailing ventures in China, potential new oil and LNG trading opportunities globally and carbon emissions trading, as well as sharing of knowledge around low carbon energy and management practices, the statement reads.
China aims to increase the proportion of gas in its overall primary energy consumption and according to BP’s energy outlook, by 2035 shale gas will account for a quarter of the total gas produced globally, with China becoming the largest contributor to the growth.