Witnessed by BP Group Chief Executive Bob Dudley and CNPC Chairman Wang Yilin, the contract is BP’s first shale gas contract in China and covers an area of approximately 1,500 square kilometres. CNPC will be operator for this project.
The 2016 edition of the widely-respected BP Energy Outlook predicts that by 2035, shale gas will account for 25% of the total gas produced globally and China will become the world’s largest contributor to growth in shale gas production.
Dudley said: “We will bring our worldwide experience to our first unconventional gas project in onshore China with CNPC. We will combine this with CNPC’s knowledge and experience to bring gas to China’s growing clean energy market. China continues to be an important part of BP’s portfolio.”
Edward Yang, BP China President added: “Through this shale agreement, BP once again clearly reaffirms our commitment to being one of China’s preferred energy partners to support the country in developing cleaner energy for a greener future.”
“The exploration, development and production of shale gas will significantly benefit China’s energy mix in a long run”.