This is the second retreat from the Chinese shale market by the Houston-based super-major. In October 2014, the company confirmed plans to terminate a joint-study agreement with PetroChina and state rival Sinopec on the 4,047-square-kilometre Qijiang block. Conoco said the block had been designated as a military zone and would therefore be closed to foreign involvement.
China is believed to hold the world’s largest shale gas reserves. According to a 2013 report by the US Energy Information Administration, China contains 31.6 tcm (1,115 tcf) of technically recoverable shale gas, compared to the US’s 18.8 tcm (665 tcf).
However, factors such as challenging geology, lack of infrastructure and issues with exploration rights have frustrated China’s shale exploitation campaign. Of the six major oil and gas companies that have signed joint study agreements with China’s state energy entities (Sinopec, CNPC and PetroChina), only Shell has so far entered into a production-sharing contract.
In 2014, China was forced to cut its 2020 shale production goal to one-third of its original estimate of 60 bcm-80bcm (2.11 tcf-2.82 tcf). The country’s shale production is projected to be around 17 mcm (600 mcf) per day in 2015, compared to the 1.3 bcm (45.9 bcf) per day that the US will produce.
For more news and features on China, click here.
Spain's Iberdrola plans to triple its offshore wind assets in the coming years, bringing their value to USD 18 billion,… Read More
Saipem has been awarded a USD 850-million contract for subsea works in Angola by local BP-Eni joint venture Azule Energy,… Read More
Arrow Exploration has spud a new production well on the Tapir block in Colombia’s Llanos Basin, the company announced on… Read More
Petronas has made a third oil and gas discovery in Suriname's offshore Block 52, the Malaysian company announced on Wednesday Read More
Japanese power generation player JERA on Thursday announced plans to invest USD 32 billion in LNG, renewables and new fuels… Read More
Chevron is planning to exit its North Sea operations after 55 years of activity in the oil hotspot, Reuters reported… Read More
This website uses cookies.