Shell, CNPC agree to widen Changbei exploration

by on July 25, 2012 11:07 am BST

Partners Shell and China National Petroleum Corporation have agreed to enter a new development phase of their Changbei gas field in the Ordos Basin in northern China.

The duo have agreed
to further develop the producing main reservoir at the 1692.5-square kilometre
onshore block in Shaanxi province as well as add scope to develop additional tight gas sands.

Shell will remain
operator of the production sharing contract after the deal, which is subject to
government approval.

The duo hope to
raise output beyond the current production plateau of 320 million standard
cubic feet per day if the new development succeeds.

The two companies
also partner on a number of other exploration projects in China including the producing
Jinqiu gas block and Fushun-Yongchuan shale play in Sichuan province, and a
coal-bed methane play in the Ordos Basin.