Shell and China National Petroleum Company today signed a Global Alliance Agreement that will see them pursuing mutally beneficial projects internationally as well as China.
Peter Voser, Chief Executive Officer of Royal Dutch Shell plc, said: “CNPC and Shell are collaborating in a variety of projects globally with the aim of investing for profitable growth, and to meet the world’s growing demand for cleaner, affordable energy. The Shareholders Agreement for the Well Manufacturing JV underscores how Shell and CNPC are working together to develop gas resources using innovative and cost competitive technologies.”
The two parties also signed a 50-50 Shareholders Agreement to establish a well manufacturing joint venture. The collaboration will develop an innovative manufacturing system which could significantly improve the efficiency of drilling and completing new wells onshore.
The WMS joint venture is expected to source the majority of its rigs, services and drilling equipment from low-cost suppliers in China. Shell say this combination could unlock substantial natural gas resources cost-efficiently, and on a large scale.
CNPC is China’s largest oil and gas producer and supplier, as well as one of the world’s major oilfield service providers and a globally reputed contractor in engineering construction.