A US energy company has signed a co-operation agreement with a Chinese firm to develop a shale oil block in China.
China is believed to hold the world’s largest recoverable shale gas resources and aims to replicate the production boom seen in the US, however, it is still in the early stages of exploration for both oil and gas.
Hess Corporation and China National Petroleum Corporation (CNPC) signed the contract in Beijing yesterday, which follows a joint study conducted by the two companies.
In a statement, CNPC, the largest oil producer in the China said: “The two sides exchanged views on furthering co-operation in the oil and gas sector and signed a cooperation agreement on Malang Block of the Santanghu Basin in Xinjiang, China.”
Last year Shell landed the country’s first shale gas production-sharing contract to develop a block in Sichuan.